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4. An investment loses 25% of its value. What percent must it increase to recover the loss?

User Jfn
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Answer: 33%

Step-by-step explanation: The math of percentages shows that as losses get larger, the return necessary to recover to break-even increases at a much faster rate. A loss of 10 percent necessitates an 11 percent gain to recover. Increase that loss to 25 percent and it takes a 33 percent gain to get back to break-even.

User Vinu
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