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The following three defense stocks are to be combined into a stock index in January 2 0 1 6 ( perhaps a portfolio manager believes
The following three defense stocks are to be combined into a stock index in January perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance: Suppose that Douglas McDonnell shareholders approve a for stock split on January
Price
Shares
millions
Douglas McDonnell $ $ $
Dynamics General
International Rockwell
What is the new divisor for the index? Do not round intermediate calculations. Round your answer to decimal places.
b Calculate the rate of return on the index for the year ending December if Douglas McDonnells share price on January is $ per share. Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
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