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The following three defense stocks are to be combined into astock index in January 2016 (perhaps a portfolio manager believesthese stocks are an appropriate benchmark for his or herperformance). Assume the index is scaled by a factor of 10 million;that is, if the total value of all firms in the market is $5billion, the index would be quoted as 500.PriceShares(millions)1/1/161/1/171/1/18Douglas McDonnell360$65$69$83Dynamics General450524660International Rockwell170817086a. Calculate the initial value of the index ifa value-weighting scheme is used. (Round your answer to 2decimal places.)b. What is the rate of return on thisindex for the year ending December 31, 2016? For the year endingDecember 31, 2017? (A negative value should be indicated bya minus sign. Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places.)