Table 12.1
Year | Large Company Stock | Long-Term Government Bonds | US Treasury Bills | Consumer Price Index |
1973 | -14.69 | 3.30 | 7.29 | 8.71 |
1974 | -26.47 | 4.00 | 7.99 | 12.34 |
1975 | 37.23 | 5.52 | 5.87 | 6.94 |
1976 | 23.93 | 15.56 | 5.07 | 4.86 |
1977 | -7.16 | 0.38 | 5.45 | 6.70 |
1978 | 6.57 | -1.26 | 7.64 | 9.02 |
1979 | 18.61 | -2.76 | 10.56 | 13.29 |
1980 | 32.50 | -2.48 | 12.10 | 12.52 |
Refer to Table 12.1 and look at the period from 1973 through1980.
- Calculate the average return for Treasury bills and the averageannual inflation rate for this period. (Do not round intermediatecalculations and enter your answers as a percent rounded to 2decimal places, e.g., 32.16.)
b.Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Calculate the standard deviation of Treasury bill returns andinflation over this period. (Do not round intermediate calculationsand enter your answers as a percent rounded to 2 decimal places,e.g., 32.16.)
c.Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â What was the average real return for Treasury bills over thisperiod? (A negative answer should be indicated by a minus sign. Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)
a | Treasury Bills | | % |
| Inflation | | % |
b | Treasury Bills | | % |
| Inflation | | % |
c | Average real return | | % |
