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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 2022(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
10 million; that is, if the total value of all firms in the market is $5 billion, the index would be quoted as 500.
a. Calculate the initial value of the index if a value-weighting scheme is used.
Note: Round your answer to 2 decimal places.
Index value
b. What is the rate of return on this index for the year ending December 31,2022? For the year ending December 31,2023?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your
answers as a percent rounded to 2 decimal places.
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