Question

Suppose a stock drops in value by 60 percent one week then increases in value the next week by 75 percent. Is the value higher or lower then when you started and by how much

Answer 1

So let’s say a stock is at 1 dollar per stock. It drops by 60 cents. Now it’s at 40 cents. Then it goes up by 75% of 40 which is 10 cents. So 40 plus 10 is 50 cents making it less than the original by 50 cents