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):

		Price
	Shares (millions)		1/1/19			1/1/20			1/1/21
Douglas McDonnell	530		$	62		$	66		$	81
Dynamics General	230			34			28			42
International Rockwell	330			63			52			68

a. Calculate the initial value of the index if a price-weighting scheme is used.

Index Value ___________-

b. What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

2019 Return _______%

2020 Return _______%