Problem 10-22 Calculating Returns

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

b.	Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Standard deviation
Treasury bills
Inflation

c.	What was the average real return for Treasury bills over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Average real return