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Suppose we have the following Treasury bill returns and inflation rates over an eight-year period:...

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Finance

Suppose we have the following Treasury bill returns and inflation rates over an eight-year period:

Year Treasury Bills Inflation
1 9.01% 10.86%
2 9.87 14.41
3 7.62 8.80
4 6.71 6.39
5 7.20 8.56
6 9.50 10.99
7 12.33 15.15
8 14.09 14.89

a.

Calculate the average return for Treasury bills and the average annual inflation rate for this period. (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 period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
c. What was the average real return for Treasury bills over this period? (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.)

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