If the Laspeyres Index Is 135

question 19

Multiple Choice

If the Laspeyres index is 135.41 and the Paasche index is 145.34, what is Fisher's ideal index?

• A) 117.144
• B) 13722
• C) 137.22
• D) 140.29

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Definitions:

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which often bears no relation to its market value.

Treasury Stock

Refers to shares that were issued by a company and later repurchased. These shares do not pay dividends, have no voting rights, and are not included in shares outstanding calculations.

Foreign Currency Translation

Foreign currency translation is the process of converting the financial statements of a company from its functional currency into another currency for reporting purposes.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing the ownership interest.