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Suppose we have the following Treasury bill returns and inflation rates over an eight-year period: Year Treasury bills Inflation 12345678 7.82% 9.42% 8.60 13.04 6.44 7:55 5.60 5.35 6.02 7.31 8.25 9.67 11.23 12.85 13.98 13.37 a. Calculate the average return for Treasury bills and the average annual inflation rate 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 period. Note: 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? 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. a. Treasury bills Inflation b. Treasury bills Inflation c. Average real return % % % % %

Suppose we have the following Treasury bill returns and inflation rates over an eight-year period: Year Treasury bills Inflation 12345678 7.82% 9.42% 8.60 13.04 6.44 7:55 5.60 5.35 6.02 7.31 8.25 9.67 11.23 12.85 13.98 13.37 a. Calculate the average return for Treasury bills and the average annual inflation rate 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 period. Note: 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? 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. a. Treasury bills Inflation b. Treasury bills Inflation c. Average real return % % % % %

Essentials Of Investments
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
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Suppose we have the following Treasury bill returns and inflation rates over an eight-year period: Year Treasury bills Inflation 12345678 7.82% 9.42% 8.60 13.04 6.44 7:55 5.60 5.35 6.02 7.31 8.25 9.67 11.23 12.85 13.98 13.37 a. Calculate the average return for Treasury bills and the average annual inflation rate 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 period. Note: 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? 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. a. Treasury bills Inflation b. Treasury bills Inflation c. Average real return % % % % %
Transcribed Image Text:Suppose we have the following Treasury bill returns and inflation rates over an eight-year period: Year Treasury bills Inflation 12345678 7.82% 9.42% 8.60 13.04 6.44 7:55 5.60 5.35 6.02 7.31 8.25 9.67 11.23 12.85 13.98 13.37 a. Calculate the average return for Treasury bills and the average annual inflation rate 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 period. Note: 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? 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. a. Treasury bills Inflation b. Treasury bills Inflation c. Average real return % % % % %
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