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The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an

image text in transcribed The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Assume the index is scaled by a factor of 10 million; that is, if the otal value of all firms in the market is $5 billion, the index would be quoted as 500 . Calculate the initial value of the index if a value-weighting scheme is used. (Round your answer to 2 decimal places.) . What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (A egative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent ounded to 2 decimal places.)

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