Another type of index is the geometric index. The calculation of a geometric index is similar to

Question:

Another type of index is the geometric index. The calculation of a geometric index is similar to the calculation of a geometric return:
1 + RG = [(1 + R1) (1 + R2) . . . (1 + RN)]1/N
The difference in the geometric index construction is the returns used are the returns for the different in the index for a particular period, such as a day or year. Construct the geometric index returns for Problem 14 over each of the two years. Assume the beginning index level is 100.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...