Seved Help Save & Exit Submit 5: Homework Suppose the following four 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) Brady Corporation Luck Industries Mahomes International Wenta Products Share millon) 1/1/191/1/201/1/21 375 $20 532 430 39 42 46 550 50 54 62 275 21 25 23 a. Calculate the initial value of the index if a price weighting scheme is used. What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 2019 return 2020 return b. Now assume that a value-weighted index is used and that it is scaled by a factor of 10 million; that is, if the average firm's market value is $5 billion, the index would be quoted as 500. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 1/1/2019 1/1/2020 1/1/2021 index values Percent return % Seved Help Save & Exit Submit 5: Homework Suppose the following four 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) Brady Corporation Luck Industries Mahomes International Wenta Products Share millon) 1/1/191/1/201/1/21 375 $20 532 430 39 42 46 550 50 54 62 275 21 25 23 a. Calculate the initial value of the index if a price weighting scheme is used. What is the rate of return on this index for the year ending December 31, 2019? For the year ending December 31, 2020? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 2019 return 2020 return b. Now assume that a value-weighted index is used and that it is scaled by a factor of 10 million; that is, if the average firm's market value is $5 billion, the index would be quoted as 500. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 1/1/2019 1/1/2020 1/1/2021 index values Percent return %