Fisher Price Index Solution

STEP 0: Pre-Calculation Summary
Formula Used
Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)
FPI = sqrt(LPI*PPI)
This formula uses 1 Functions, 3 Variables
Functions Used
sqrt - A square root function is a function that takes a non-negative number as an input and returns the square root of the given input number., sqrt(Number)
Variables Used
Fisher Price Index - Fisher Price Index is a measure of the average level of prices for a specified set of goods and services over a period of time.
Laspeyres Price Index - Laspeyres Price Index is a measure used in economics to calculate the average change in the price of a fixed basket of goods and services between two periods.
Paasche Price Index - Paasche Price Index is used to measure the average change in the prices of a basket of goods and services between two periods.
STEP 1: Convert Input(s) to Base Unit
Laspeyres Price Index: 320 --> No Conversion Required
Paasche Price Index: 340 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FPI = sqrt(LPI*PPI) --> sqrt(320*340)
Evaluating ... ...
FPI = 329.848450049413
STEP 3: Convert Result to Output's Unit
329.848450049413 --> No Conversion Required
FINAL ANSWER
329.848450049413 329.8485 <-- Fisher Price Index
(Calculation completed in 00.004 seconds)
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19 Equity Calculators

Float-Adjusted Market Capitalisation Index
​ Go Float Adjusted Market Capitalisation = (Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)/(sum(x,1,Number of Securities in the Index,(Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)))
Market Capitalization Index
​ Go Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))
Laspeyres Price Index
​ Go Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100
Paasche Price Index
​ Go Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100
Altman's Z Score Model
​ Go Zeta Value = 1.2*Working Capital+1.4*Retained Earnings+3.3*Earnings Before Interest and Taxes+0.6*Market Value of Equity+1.0*Total Sales
Capital Allocation Line
​ Go Expected Return on Portfolio = ((Expected Return on Treasury Bill*Weight of Treasury Bill)+(Expected Return of Stock*Weight of Stock))*100
Justified Forward Price to Earnings Ratio
​ Go Justified Forward Price to Earnings Ratio = (Dividend/Earnings Per Share)/(Cost of Equity-Growth Rate)
Margin Call Price
​ Go Margin Call Price = Initial Purchase Price*((1-Initial Margin Requirement)/(1-Maintenance Margin Requirement))
Dividend Coverage Ratio
​ Go Dividend Coverage Ratio = (Net Income-Preferred Dividend)/Common Dividend
Fisher Price Index
​ Go Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)
Momentum Indicator
​ Go Momentum Indicator = (Closing Price of Particular Stock/Closing Price of Stock N Days Ago)*100
Marshall-Edgeworth Price Index
​ Go Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2
Dividend Growth Rate
​ Go Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1
Price to Cash Flow Ratio
​ Go Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow
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Ev to Ebitda Ratio
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Maximum Leverage Ratio
​ Go Maximum Leverage Ratio = 1/Initial Margin Requirement
Equal Weighting
​ Go Equal Weighting = 1/Number of Securities in the Index

Fisher Price Index Formula

Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)
FPI = sqrt(LPI*PPI)

What is Fisher Price Index?

The Fisher Price Index, named after the economist Irving Fisher, is a method used to calculate a price index, which is a measure of the average level of prices for a specified set of goods and services over a period of time. The Fisher Price Index seeks to address some of the shortcomings of other price indices, particularly the Laspeyres and Paasche indexes, by utilizing the geometric mean of the two.
The Fisher Price Index is believed to provide a more accurate measure of price changes compared to either the Laspeyres or Paasche index alone. It helps to mitigate some of the biases inherent in each of the individual indexes. By taking the geometric mean, it combines the advantages of both indexes while minimizing their disadvantages.
The Fisher Price Index is widely used in economics, finance, and government statistics to measure inflation or deflation and to adjust economic variables for changes in purchasing power.

How to Calculate Fisher Price Index?

Fisher Price Index calculator uses Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index) to calculate the Fisher Price Index, The Fisher Price Index formula is defined as a method used to calculate a price index that takes into account both the Laspeyres and Paasche indexes, addressing their respective biases. Fisher Price Index is denoted by FPI symbol.

How to calculate Fisher Price Index using this online calculator? To use this online calculator for Fisher Price Index, enter Laspeyres Price Index (LPI) & Paasche Price Index (PPI) and hit the calculate button. Here is how the Fisher Price Index calculation can be explained with given input values -> 329.3327 = sqrt(320*340).

FAQ

What is Fisher Price Index?
The Fisher Price Index formula is defined as a method used to calculate a price index that takes into account both the Laspeyres and Paasche indexes, addressing their respective biases and is represented as FPI = sqrt(LPI*PPI) or Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index). Laspeyres Price Index is a measure used in economics to calculate the average change in the price of a fixed basket of goods and services between two periods & Paasche Price Index is used to measure the average change in the prices of a basket of goods and services between two periods.
How to calculate Fisher Price Index?
The Fisher Price Index formula is defined as a method used to calculate a price index that takes into account both the Laspeyres and Paasche indexes, addressing their respective biases is calculated using Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index). To calculate Fisher Price Index, you need Laspeyres Price Index (LPI) & Paasche Price Index (PPI). With our tool, you need to enter the respective value for Laspeyres Price Index & Paasche Price Index and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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