Question: Use the data below to calculate the standard deviation of nominal and real Treasury bill returns from 1972-1982. Do you think that when they purchased

Use the data below to calculate the standard deviation of nominal and real Treasury bill returns from 1972-1982. Do you think that when they purchased T-bills investors expected to earn negative real returns as often as they did during this period? If not, what happened that took investors by surprise?

Year Nominal Return (%) Real Return (96) 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 8.0 -3.7 1.5 7.2 10.4 11.2 -2.6 1.0 5.3 6.4 10.5

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