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The followng three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager belleves these stocks are an

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The followng three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager belleves these stocks are an approptate benchmark for his or her performance). Assume the index is scaled by a factor of 10 mition, that is, if the total value of all firms in the market is $5 billison, the index would be quoted as 500 . a. Calculate the initual value of the index if a value-weighting scheme is used. (Round your answer to 2 decimel ploces.) b. What is the rate of return on this index for the year ending December 31, 20197 For the year ending December 31,2020 ? {4 negative value should be indicated by a minus sign. Do not round intermediate caleulations. Enter your answers os o percent rounded to 2 decimal places)

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