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?

\begin{tabular}{ccc} Year & T-bill return & Inflation \\ 1 & 7.39% & 8.61% \\ 2 & 8.54 & 12.24 \\ 3 & 5.97 & 6.84 \\ 4 & 5.57 & 4.96 \\ 5 & 5.55 & 6.60 \\ 6 & 8.14 & 8.92 \\ 7 & 10.66 & 13.19 \\ 8 & 12.60 & 12.42 \end{tabular} \begin{tabular}{|l|l|l|} \hline a. Treasury bills & % \\ \hline Inflation rate & & % \\ \hline b. Treasury bills & & % \\ \hline Inflation rate & & % \\ \hline c. Year 1 & & % \\ \hline Year 2 & & % \\ \hline Year 3 & & % \\ \hline Year 4 & & % \\ \hline Year 5 & & % \\ \hline Year 6 & & % \\ \hline Year 7 & & % \\ \hline Year 8 & & % \\ \hline d. Average real return & & % \\ \hline \end{tabular}