Final answer:
To determine the current worth of a stock that has tripled, multiply the original value by three. This calculates the capital gain, which is an essential component in determining the expected profit from an investment.
Step-by-step explanation:
To find out how much a stock is worth now after it has tripled in value, you would take the original value of the stock and multiply it by three. For example, if the stock was initially worth $100, after tripling, it would be worth $100 × 3 = $300. This calculation reflects a capital gain, which is the increase in the value of an asset between when it is bought and when it is sold.
If a person invests in stock, there are different outcomes which could result in a gain, no change, or a loss. For instance, if a person has a 5 percent probability that the stock will increase in value by $10,000 after one year, then the expected gain would be $10,000 × 5% = $500. This is part of calculating the expected profit which is a weighted average of all possible outcomes.