Treasury Bills Returns and Inflation
Not what you're looking for?
Calculating Returns
Refer to the following table:
Year T-Bill Return Inflation
1973 0.0729 0.0871
1974 0.0799 0.1234
1975 0.0587 0.0694
1976 0.0507 0.0486
1977 0.0545 0.0670
1978 0.0764 0.0902
1979 0.1056 0.1329
1980 0.1210 0.1252
Requirement 1:
Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not include the percent sign (%). Round answers to 2 decimal places, e.g. 32.16.)
Average Treasury bill return percent
Average inflation percent
Requirement 2:
Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not include the percent sign (%). Round to 2 decimal places, e.g. 32.16.)
Standard deviation
T-bills percent
Inflation percent
Requirement 3:
Calculate the average real return for Treasury bills over this period. (Negative amount should be indicated by a minus sign. Do not include the percent sign (%). Round answers to 2 decimal places, e.g. 32.16.)
Average real return ______ percent
Please see attached file with problem.
Purchase this Solution
Solution Summary
The solution:
1) Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index).
2) Calculates the standard deviation of Treasury bill returns and inflation.
3) Calculates the average real return for Treasury bills.
Solution Preview
Please see attached file for complete answer.
Calculating Returns
Refer to the following table:
Year T-Bill Return Inflation
1973 0.0729 0.0871
1974 0.0799 0.1234
1975 0.0587 0.0694
1976 0.0507 0.0486
1977 0.0545 0.0670
1978 0.0764 0.0902
1979 0.1056 0.1329
1980 0.1210 0.1252
Requirement 1:
Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not include the percent sign (%). Round answers to 2 decimal places, e.g. 32.16.)
Average Treasury bill return percent
Average inflation percent
Requirement 2:
Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not include the percent sign (%). Round to 2 decimal places, e.g. 32.16.)
Standard deviation
T-bills percent
Inflation percent
Requirement 3:
Calculate the average real return for Treasury bills over this period. (Negative amount should be indicated by a minus sign. Do not include the percent sign (%). Round answers to 2 decimal places, e.g. 32.16.)
Average real return ______ ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Motivation
This tests some key elements of major motivation theories.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.