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
|