Marshall-edgeworth method, Financial Management

Marshall-Edgeworth Method

Marshall-Edgeworth method uses both the current year as well as the base year prices and quantities. Marshall-Edgeworth Index can be computed using the following formula,

Marshall-Edgeworth Index = 2003_marshall edgeworth method1.png x 100

where Q0, Q1, P0 and P1 follow the usual notations.

Marshall-Edgeworth Index

319_marshall edgeworth method.png

Marshall-Edgeworth Index is simple to construct but suffers from the problems in data collection. However, the Marshall-Edgeworth index closely approximates the results obtained by the Fisher's Ideal index.

Posted Date: 9/17/2012 2:52:06 AM | Location : United States







Related Discussions:- Marshall-edgeworth method, Assignment Help, Ask Question on Marshall-edgeworth method, Get Answer, Expert's Help, Marshall-edgeworth method Discussions

Write discussion on Marshall-edgeworth method
Your posts are moderated
Related Questions
Aims of FSA The aim of FSA is to promote efficient, orderly and fair markets, and to help retail consumers to get a fair deal. In fact, FSA has set out its aims under three bro

Illustrate the process of calculating call/ put options yields Issuing corporation will use provision if interest rates fall substantially below coupon rates offered on the se

SHAREHOLDER VALUE There are various measures used by market analysts and financial experts to derive the maximum Shareholder Value of a particular company but we would take the

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

Correlation Among Stock Index Returns Correlation among stock Index Returns can be defined as the extent to which the values of different types of investments move in tandem wi

M has recently joined the board of X Company, a main listed confectionary manufacturer. The company was established as a family business over a century ago and members of the found

Modified duration is used to determine the percentage change in the bond's prices for a 100 basis point (1%) change in the yield. The underlying assumption is tha

#questioDiscuss the applicability of an operating cycle in the vegetable growing business n..

What is the difference among pro forma financial statements and a cash budget?  Explain why pro forma financial statements are not employed to forecast cash needs. Pro forma inco

Question: Cinderella invests the following sums of money in common stocks having the expected returns as detailed below: (a) What is the expected return of Cinderella's por