# Question

The Trio Index is comprised of three stocks, Eins, Zwei, and Tri. Their current prices are as follows:

a) Between now and the next time period, the stock prices of Eins and Zwei increase 10 percent while Tri increases 20 percent. What is the percentage change in the price-weighted Trio Index?

b) Suppose instead that the price of Eins increases 20% while Zwei and Tri rise 10 percent. What is the percentage change in the price-weighted Trio Index? Why does it differ from the answer to part a)?

a) Between now and the next time period, the stock prices of Eins and Zwei increase 10 percent while Tri increases 20 percent. What is the percentage change in the price-weighted Trio Index?

b) Suppose instead that the price of Eins increases 20% while Zwei and Tri rise 10 percent. What is the percentage change in the price-weighted Trio Index? Why does it differ from the answer to part a)?

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