The Trio Index is comprised of three stocks, Eins, Zwei, and Tri. Their current prices are as
Question:
The Trio Index is comprised of three stocks, Eins, Zwei, and Tri. Their current prices are as follows:
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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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a With a 10percent increase Eins will rise from 10 to 11 while Zwei rises from 20 t...View the full answer
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Related Book For 
Introduction to Finance Markets Investments and Financial Management
ISBN: 978-1118492673
15th edition
Authors: Melicher Ronald, Norton Edgar
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