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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 21,500 at the start of the year and 26,000 at the end. The dividend yield on the index is 4.6%.
a. What is the return on the index over the year?
b. If the interest rate is 7%, what is the risk premium over the year?
c. If the inflation rate is 9%, 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 2
decimal places.
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