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The level of the Syldavia market index is 2 1 , 5 0 0 at the start of the year and 2 6 , 0
The level of the Syldavia market index is at the start of the year and at the end. The dividend yield on the index is
a What is the return on the index over the year?
b If the interest rate is what is the risk premium over the year?
c If the inflation rate is what is the real return on the index over the year?
Note: For all requirements, do not round intermediate calculations and enter your answers as a percent rounded to
decimal places.
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