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The following three defense stocks are to be combined into a stock index in January 2010 (perhaps a portfolio manager believes these stocks are an

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The following three defense stocks are to be combined into a stock index in January 2010 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): a. Compute the rate of return on an equally weighted index of the three defense stocks for the year ending December 31, 2010. (Negative amounts should be indicated by a minus sign. Round your onswer to 2 decimal ploces. Omit the "\%" sign in your response.) b. If the index value is set to 100 on January 1,2010 , what will the index value be on January 1, 2011? (Round your answer to 2 decimal places.) c. What is the rate of return on the index for 2011? (Round your answer to 2 decimal places. Omit the "\%" sign in your response.)

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