The geometric index or industrial share index, Mathematics

The Geometric Index or Industrial Share index

The Geometric Index or Industrial Share index is an index of 30 selected top industrial companies. This is calculated by taking an un-weighted geometric mean of the price relatives of the chosen shares.

Illustration

The share prices of ordinary shares of four companies on date 1st January 1990 and on date 1st January 1991 were given as.

Share

Price on 1.1.1990

Price on 1.1.1991

Company A

Shs 10

Shs 12

Company B

Shs 12

Shs 15

Company C

Shs 20

Shs 25

Company D

Shs 5

Shs 6

Posted Date: 2/18/2013 2:34:21 AM | Location : United States







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