# Tag Info

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Indexes don't have units. They're indexes. An index is a ratio of two numbers. The two numbers have the same dimension. So their ratio is unit-less. The compilers of each stock market index set a denominator which represents a base set of conditions, and they then may adjust that denominator to ensure that events that change market cap, but which should ...

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The consumer price index is used to measure the rate at which prices increase. It is calculated by taking a basked of common goods that people buy all the time (groceries, appliances, etc.) and looking at how their average prices change over time. Suppose we are calculating the CPI using a basket of goods that contains only cinema tickets. Last year a ...

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While stock indexes can be formally defined as unitless, they are tied to a currency because comparing market values at different times requires a specific, persistent unit of account. A simple criterion that clarifies the issue is to ask in what currency a given index is investable, i.e., in what currency an ETF could be traded such that its price ...

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Because of the Law of One Price, identical products are supposed to cost the same in different places. Since McDonald's applies standards for all the individual franchisees, the product is supposed to be identical even if it isn't perfectly identical. The law assumes there are no transportation costs. If lower costs exist in one place and there are no ...

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There's a lot to unpack here. It is increasingly the case, especially among passive strategies, that transaction costs and management fees are the primary dimension along which funds are differentiated. Ignoring those costs seriously distorts the question. If you invest dollars in the Nikkei that you might otherwise have invested in the S&P500 because ...

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The best way is taking the index "ingredients" and rebuild it... assuming you manage the index data on a DB or on an excel file, that should not be too difficult Otherwise, assuming you're index ingredients are averaged equally, then in a sense, the index is calculated as: Index = (1 + Product1ChangeIn%)^(1/9) * (1 + Product2ChangeIn%)^(1/9) ... So based ...

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No, you want to re-scale proportionally, so you want to solve the equation $115.9x=100$, so that $x=100/115.9$ and then multiply each value by $x$. The value for 1997, for example, should be 86.3 (after rounding).

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Note that $Q_i P_i$ is the total revenue from good $i$. So dividing total revenue from all goods by the amount produced of all of them should give us something like "average revenue per item produced"?

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The Billion Price Project offers what you want: Daily price indices, monthly, and annual inflation rates for Argentina and the US. Monthly data with annual inflation rates for Argentina, Brazil, China, Germany, Japan, South Africa, UK, US, 3 US sectors, and global aggregates (including Eurozone). Daily PPP series for Argentina and Australia. ...

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In itself, a price index for single period does not tell you much, as any index is, by definition, without dimension. Assuming that 3.41 is the annual change in the CPI (= Consumer Price Index), this would imply an inflation rate of 3.41%. To be specific, it implies that the total price of a representative commodity basket changed by 3.41%. The WPI (= ...

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Since 2014, this is the official formula to compute the price of NG in India: The details of this formula, including where the data is taken from can be found here. To see historical data with this formula (since 2014), see the left panel here. Simply click in the period you want to see. Notice these prices are set for a six-month period. There is more ...

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I think you should calculate the log of the ratio of two price series. When googling "log of relative price index", I did not find many references, but I found three which seem sufficient to me: Footnote 23 in page 14 in this IMF research paper states: The RPI is defined as the ratio of domestic CPI for a country to trade weighted averages of the CPI's ...

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You need to use PPP rates. These convert basket of goods in one country (in LCU) to that of (normally) the US, in US dollars. You can find these rates here or here. With these rates you can transform nominal GDP in Yuan into nominal GDP in USD. Then, you can use a US CPI or GDP deflator index to transform these nominal international dollars into constant ...

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