Year T-bill return 4677AWNHO 1 2 3 5 8 a. Treasury bills Inflation rate b. Treasury bills Inflation rate 7.40% 8.59 5.98 5.62 5.56 8.19 c. Year 1 Year 2 Year 3 10.67 12.65 Inflation 8.60% a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the standard deviation of Treasury bill returns and inflation over this time period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the real return for each year. Note: A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the average real return for Treasury bills? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 12.23 6.83 4.97 6.59 8.91 13.18 12.41 % % % % % % %

a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.9., 32.16. b. Calculate the standard deviation of Treasury bill returns and inflation over this time period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the real return for each year. Note: A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "on wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the average real return for Treasury bills? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . \begin{tabular}{|c|c|c|} \hline a. Treasury bills & & % \\ \hline Inflation rate & & % \\ \hline b. Treasury bilis & & % \\ \hline Inflation rate & 7 & % \\ \hline c. Year 1 & & % \\ \hline Year 2 & & % \\ \hline Year 3 & & % \\ \hline Year 4 & & % \\ \hline Yeat 5 & & % \\ \hline Year 6 & 7 & % \\ \hline Year 7 & & % \\ \hline Year 8 & & % \\ \hline d. Average real return & 7 & 96 \\ \hline \end{tabular}