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The following three defense stocks are to be combined into a stock index in January 2010 (perhaps a portfolio manager believes these stocks are an
The following three defense stocks are to be combined into a stock index in January 2010 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): a. Calculate the initial value of the index if a price-weighting scheme is used. b. What is the rate of return on this index for the year ending December 31, 2010? For the year ending December 31, 2011 ? (Negatlve amounts should be lndlcated by a minus slgn. Round your answer to 2 declmel pleces. Omit the "% slgn ln your response.)
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