P5-1: The level of the Syldavian market index is 22,800 at the start of the year and 27,300 at the end. The dividend yield on the index is 5.0%.

(Only pending part c)

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 24.74 % b. If the interest rate is 6%, 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 18.74 % c. If the inflation rate is 8%, 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 %