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The following three defense stocks are to be combined into a stock index in January 2013 (perhaps a portfolio manager believes these stocks are an

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The following three defense stocks are to be combined into a stock index in January 2013 (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, 2014 Price Shares (millions) 1/1/13 1/1/141/1/15 $ 103 106 118 53 79 340 450 410 Douglas McDonnell Dynamics General International Rockwell 45 74 39 63 a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) New divisor b. Calculate the rate of return on the index for the year ending December 31, 2014, if Douglas McDonnell's share price on January 1, 2015, is $39.33 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the '%" sign in your response.) Rate of return

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