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Why this answer is not correct? The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio
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The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Douglas McDonnell Dynamics General International Rockwell Shares (millions) 360 450 170 1/1/19 $ 65 52 81 1/1/20 $ 69 46 70 1/1/21 $ 83 60 86 a. Calculate the initial value of the index if a price-weighting scheme is used. Answer is complete and correct. Index value 66 b. What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (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.) X Answer is complete but not entirely correct. 2019 return -6.56 % 2020 return 19.21 %Step by Step Solution
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