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The level of the Syldavian market index is 22,900 at the start of the year and 27,400 at the end. The dividend yield on the
The level of the Syldavian market index is 22,900 at the start of the year and 27,400 at the end. The dividend yield on the index is 5.2%. 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 5%, 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 7%, 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 %
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