The following three defense stocks are to be combined into a stock index in January...
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Finance
The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 2-for-1 stock split on January 1, 2017. a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Calculate the rate of return on the index for the year ending December 31, 2017, if Douglas McDonnell's share price on January 1 , 2018 , is $25.10 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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