QUESTION 4 The following three defense stocks are to be combined into a price-weighted stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017 and that the company enacts the stock split on January 2, 2017 Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell 195 $ 97 $100 $35.39 Dynamics General 455 22 36 International Rockwell 230 45 62 a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 2 decimal places.) New Divisor: b. Calculate the rate of return on the index for the year of 2017. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of Return