If a stock gains 50 percent one year and loses 50 percent of its value the next year, is it accurate to say that its mean growth over the full two-year period was (50 + -50)/2 = 0%?

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If a stock gains 50 percent one year and loses 50 percent of its value the next year, is it accurate to say that its mean growth over the full two-year period was (50 + -50)/2 = 0%?

Mathematics
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no
suppose it is worth $100 and increases by 50% what is it worth now?`

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no that is a 100% increase what is 50% of 100?
@satellite73 50? So would you add 50 to 100 and the total would be 150?
yes
HI!!
if it is now worth $150 and decreases by 50% which is by half, what is it worth now?
yup
so it is not 0 as an average, it has lost 25% of its value
the math teacher way is \[1.50\times .50=0.75\]
so it has 75% of its initial value
which is the same as saying it lost 25%!
@misty1212 @satellite73 Awesome!! Thank you so much. That makes much more sense. I appreciate it
yw
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nice video btw

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