Bhupatbhai The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfoliomanager believes these stocks are an appropriate benchmark for his or her performance). Assume the index isscaled by a factor of 10 million; that is, if the total value of all firms in the market is $5 billion, the index would bequoted as 500.Shares (millions)1/1/22Price1/1/231/1/24Douglas McDonnell350Dynamics General450$ 6525$ 6919$ 8133International2105443Rockwell57a. Calculate the initial value of the index if a value-weighting scheme is used.Note: Round your answer to 2 decimal places.Index valueb. What is the rate of return on this index for the year ending December 31, 2022? For the year ending December31, 2023?Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enteryour answers as a percent rounded to 2 decimal places.2022 return2023 return%%

The value-weighted index is a kind of stock market index in which the entire market value of an…

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 Decembe 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. 2022 return 2023 return % %