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The following three defense stocks are to be combined into a stock index in January 2 0 2 2 ( 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 Assume the index is scaled by a factor of million; that is if the total value of all firms in the market is $ billion, the index would be quoted as
tablePriceDouglas McDonnell,Shares millionsDynamics General,$$$InternationalRockwell
a Calculate the initial value of the index if a valueweighting scheme is used.
Note: Round your answer to decimal places.
Index value
b What is the rate of return on this index for the year ending December For the year ending December Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
table return,M
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