Question

You decide you will buy a stock only if it shows an overall increase over the next 30 days. The first 10 days it has an average daily increase of 0.30. The next 10 days it has an average daily decrease of 0.45. The last 10 days it has an average daily increase of 0.25.

a. how much did the stock change over the first 10 days? show your work
b. how much did the stock change over the next 10 days? show your work
c. how much did the stock change over the last 10 days? show your work
d. how much did the stock change altogether?
c. should you buy the stock? explain.

Answer 1

Let the initial price of the stock be x.

a. 1st 10 days' change = 0.30 x 10 = 3.00
b. Next 10 days' change = -0.45 x 10 = -4.50
c. Last 10 days' change = 0.25 x 10 = 2.50
d. The stock's change altogether = (3.00 - 4.50 + 2.50) = 1.00
e. The stock should be bought because it shows an overall increase.