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anonymous

  • one year ago

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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  1. anonymous
    • one year ago
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    no

  2. anonymous
    • one year ago
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    suppose it is worth $100 and increases by 50% what is it worth now?`

  3. anonymous
    • one year ago
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    @satellite73 200?

  4. anonymous
    • one year ago
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    no that is a 100% increase what is 50% of 100?

  5. anonymous
    • one year ago
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    @satellite73 50? So would you add 50 to 100 and the total would be 150?

  6. anonymous
    • one year ago
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    yes

  7. misty1212
    • one year ago
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    HI!!

  8. misty1212
    • one year ago
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    if it is now worth $150 and decreases by 50% which is by half, what is it worth now?

  9. anonymous
    • one year ago
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    @misty1212 75?

  10. anonymous
    • one year ago
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    yup

  11. anonymous
    • one year ago
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    so it is not 0 as an average, it has lost 25% of its value

  12. anonymous
    • one year ago
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    the math teacher way is \[1.50\times .50=0.75\]

  13. anonymous
    • one year ago
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    so it has 75% of its initial value

  14. misty1212
    • one year ago
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    which is the same as saying it lost 25%!

  15. anonymous
    • one year ago
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    @misty1212 @satellite73 Awesome!! Thank you so much. That makes much more sense. I appreciate it

  16. anonymous
    • one year ago
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    yw

  17. misty1212
    • one year ago
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    \[\color\magenta\heartsuit\]

  18. misty1212
    • one year ago
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    nice video btw

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