Answer: 105

**Explanation:** To determine the index's value at the end of Period 3, the returns must be compounded over the three periods. The correct calculation is as follows: 1. **Period 1:** \(100 \times (1 + 12\%) = 112\) 2. **Period 2:** \(112 \times (1 - 8\%) = 103.04\) 3. **Period 3:** \(103.04 \times (1 + 2\%) \approx 105.10\) The closest value to 105.10 is **105**, which corresponds to option **B**. - **Option A (103)** is incorrect because it represents the value at the end of Period 2, not Period 3. - **Option C (106)** is incorrect because it assumes the returns are added rather than compounded, leading to an inaccurate result.

Author: LeetQuiz Editorial Team