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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

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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 appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 2.for-1 stock split on January 1, 2020, Price Douglas McDonnell Dynamics General International Rockwell Share (millions 200 300 390 1/1/19 $ 70 51 80 1/1/20 073 46 69 1/1/21 $97 60 86 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, 2020, if Douglas McDonnell's share price on January 2021, is $26.40 per share. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum

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