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
	Shares (millions)		1/1/19			1/1/20			1/1/21
Douglas McDonnell	345		$	94		$	97		$	109
Dynamics General	450			66			61			75
International Rockwell	310			95			84			101

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 McDonnells share price on January 1, 2021, is $34.50 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Rate of Return: