If a stock increases from $50 to $55 over a year, what is the risk-free rate of

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If a stock increases from $50 to $55 over a year, what is the risk-free rate of return if the risk premium for the stock is 6% and inflation is 1.5%
Note the answer is 4% but I just need to know the correct process to work through it. If a stock increases from $50 to $55 over a year, what is the risk-free rate of return if the risk premium for the stock is 6% and inflation is 1.5%
Note the answer is 4% but I just need to know the correct process to work through it.
Note the answer is 4% but I just need to know the correct process to work through it.

Explanation / Answer

Return on the stock=55/50-1=10%

Return on the stock=risk free rate+risk premium assuming

10%=risk free rate+6%

risk free rate=10%-6%

risk free rate=4%

the above is the answer

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If a stock increases from $50 to $55 over a year, what is the risk-free rate of

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