Question: Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table for an eight-year period: a. Calculate the average return for Treasury bills and the
![Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/66ff7820930cf_46366ff781fe770b.jpg)
Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table for an eight-year period: 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 "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? Note: A negative answer should be indicated by a minus sign. Do not round intermecliate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
