Problem 5-14 Price-Weighted Indexes (LO4, CFA2) The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believ stocks are an appropriate benchmark for his or her performance): Price Douglas McDonnell Dynamics General International Rockwell Shares (millions) 195 455 230 1/1/19 $ 97 27 56 1/1/20 $100 22 45 1/1/21 $113 36 62 a. Calculate the initial value of the index if a price-weighting scheme is used. Clculat Index value 60 b. What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 2019 return 2020 return % %