Suppose we have the following Treasury bill returns and inflation rates over an eight-year period:Year Treasury Bills123456787.37%8.075.95Treasury billsInflation5.155.537.7210.6412.18Inflation8.79%12.427.024.946.789.1013.3712.60a. Calculate the arithmetic average return for Treasury bills and the average annualinflation rate (consumer price index) for this period. (Do not round intermediatecalculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)Average return%%

Year Treasury Bills Inflation 1 7.37% 8.79% 2 8.07% 12.42% 3 5.95% 7.02% 4 5.15% 4.94% 5…

Suppose we have the following Treasury bill returns and inflation rates over an eight- year period: Year Treasury Bills 12345678 7.37% 8.07 5.95 5.15 5.53 7.72 10.64 12.18 Treasury bills Inflation Inflation 8.79% a. Calculate the arithmetic average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 12.42 7.02 4.94 6.78 9.10 13.37 12.60 Average return 20 20 % %

Suppose we have the following Treasury bill returns and inflation rates over an eight- year period: Year Treasury Bills 12345678 7.37% 8.07 5.95 5.15 5.53 7.72 10.64 12.18 Treasury bills Inflation Inflation 8.79% a. Calculate the arithmetic average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 12.42 7.02 4.94 6.78 9.10 13.37 12.60 Average return 20 20 % %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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es www Year 1 2 3 4 5 Returns X59200 15 % -22 10 10 Y 22% 30 -27 "* 10 21 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your variance answers rounded to 5 decimal places, e.g., .16161.) Average returns Variances Standard deviations X 15 % % % Y % &
Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 10.45% 12.55% 2 11.36 16.00 3 9.06 10.29 4 8.34 7.97 5 8.88 10.29 6 11.23 12.77 7 14.11 16.98 8 15.97 16.90 a. Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation % b. Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation %…
Suppose we have the following Treasury bill returns and inflation rates over an eight- year period: Year Treasury Bills Inflation 123456700 8.81% 10.60% 9.66 14.18 7.42 8.59 6.52 6.21 7.00 8.35 9.29 10.77 12.11 14.92 8 13.85 14.60 a. Calculate the arithmetic average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills Inflation Average return % % 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.) Standard deviation Treasury bills Inflation % % c. What is 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…
someone please help me with this!
Consider the following table for an eight-year period: Year 1 2345678 T-bill return Inflation 7.40% 8.60% 8.59 12.23 5.98 6.83 5.62 4.97 5.56 6.59 8.19 8.91 10.67 13.18 12.65 12.41 a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) 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 time period. (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. (A negative answer should be Indicated by a minus sign. Leave no cells blank - be certain to enter "O" 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? (A negative…
Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.47 % 8.53 % 2 8.94 12.16 3 6.05 6.76 4 5.97 5.04 5 5.63 6.52 6 8.54 8.84 7 10.74 13.11 8 13.00 12.34 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills % Average annual inflation rate % Calculate the standard deviation of Treasury bill returns and inflation over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation of Treasury bills % Standard deviation of inflation % Calculate the real return for each year. (A negative answer should be indicated by a minus sign. Leave no cells…
1, Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.47% 8.53% 2 8.94 12.16 3 6.05 6.76 4 5.97 5.04 5 5.63 6.52 6 8.54 8.84 7 10.74 13.11 8 13.00 12.34 a, Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. b, Calculate the standard deviation of Treasury bill returns and inflation over this time period. c, Calculate the real return for each year. d, What is the average real return for Treasury bills?
Consider the following table for an eight-year period: Year T-bill return Inflation 123L 7.41% 8.59% 8.64 12.22 5.99 6.82 4 5.67 4.98 5.57 6.58 6 8.24 8.90 7 8 10.68 12.70 13.17 12.40 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?…
Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation 3.55% -1.17% 1234567 3.40 4.30 4.72 2.52 1.40 1.13 Average real return -2.31 -1.21 0.63 -6.45 -9.37 -1.32 What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) %
Consider the following table for a seven-year period: Year 1 2 34467. 5 U.S. Treasury Bills 4.00% 3.85 4.75 5.17 2.97 1.85 1.58 Returns Average real return. Inflation -1.26% -2.40 -1.30 0.72 -6.54 -9.46 -1.41 What was the average real return for Treasury bills for this time period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g... 32.16. %
Suppose that for the coming year, the inflation is forecast at an effective annual rate of 1.27%. If a bank offers a high interest rate saving account at an effective annual rate i=1.83%, what is the corresponding real, or inflation adjusted rate of interest for the coming year? 0.4409% 0.553% 0.56% 0.55% 0.69%
Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation 4.10% 1 -1.28% 2 3.95 -2.42 3 4.85 -1.32 4 5.27 0.74 5 3.07 -6.56 1.95 -9.48 7 1.68 -1.43 What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return %

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