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):

	Price
	Shares (millions)		1/1/13			1/1/14			1/1/15
Douglas McDonnell	340		$	103		$	106		$	118
Dynamics General	450			45			39			53
International Rockwell	410			74			63			79

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, 2013? For the year ending December 31, 2014? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

2013 return	%
2014 return	%