1.)

The level of the Syldavian market index is 22,200 at the start of the year and 26,700 at the end. The dividend yield on the index is 4.5%.

a. What is the return on the index over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

RETURN=______%

b. If the interest rate is 7%, what is the risk premium over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

RISK PREMIUM=______%

c. If the inflation rate is 9%, what is the real return on the index over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

REAL RETURN=_______%