Problem 10-22 Calculating Returns [LO 2, 3]
Consider the following table for an eight-year period:
YearT-bill returnInflation
17.32%8.68%
28.19 12.31
35.90 6.91
45.22 4.89
55.48 6.67
67.79 8.99
710.59 13.26
812.25 12.49
Calculate the average return for Treasury bills and the average
annual inflation rate (consumer price index) for this period. (Do
not round intermediate calculations and enter your answers as a
percent rounded to 2 decimal places, e.g., 32.16.)
Average return for Treasury bills %
Average annual inflation rate %
Calculate the standard deviation of Treasury bill returns and
inflation over this time period. (Do not round intermediate
calculations and enter your answers as a percent rounded to 2
decimal places, e.g., 32.16.)
Standard deviation of Treasury bills %
Standard deviation of inflation %
Calculate the real return for each year. (A negative answer should
be indicated by a minus sign. Leave no cells blank - be certain to
enter "0" wherever required. Do not round intermediate calculations
and enter your answers as a percent rounded to 2 decimal places,
e.g., 32.16.)
YearReal return
1%
2 %
3 %
4 %
5 %
6 %
7 %
8 %
What is the average real return for Treasury bills? (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.)
Average real return for Treasury bills
%
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP
PLEASE
Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table for an eight-year period: YearT-bill...
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Please show your work and don't round til the end.
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