Suppose a stock drops in value by 60% one week, then increases in value the next week by 75%.
Is the value higher or lower than where it started?

Suppose a stock drops in value by 60 one week then increases in value the next week by 75 Is the value higher or lower than where it started class=

Respuesta :

The value of the stock is lower than where it started.

Let's break it down step by step:

1. The stock drops in value by 60% one week. This means that if the stock started at a value of $100, it would decrease by 60% of $100, which is $60. So, after the first week, the stock would be worth $40 ($100 - $60).

2. The stock then increases in value the next week by 75%. This means that the stock would increase by 75% of $40, which is $30. So, after the second week, the stock would be worth $70 ($40 + $30).

Comparing the starting value of $100 with the final value of $70, we can see that the stock's value is lower than where it started.