Average return=Total return/Total time period
=(7+6+5+8)/4=6.5%
| Return | (Return-Average Return)^2 |
| 7 | (7-6.5)^2=0.25 |
| 6 | (6-6.5)^2=0.25 |
| 5 | (5-6.5)^2=2.25 |
| 8 | (8-6.5)^2=2.25 |
| Total=5% |
Standard deviation=[Total (Return-Average Return)^2/(Time period-1)]^(1/2)
=[5/(4-1)]^(1/2)
=[5/3]^(1/2)
=1.29%(Approx).
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Only find the annualized yield for the 6-month Treasury
bill.
The other answers are all correct.
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