change in percent changes??
- Thread starter WlND
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I have no idea if that's correct or not. Please post the full and exact text of the exercise, including the complete instructions, so we can see what is going on. Thank you!
...................2011...............2012..................2013
Stock A.......4.8.....................5.8...................3.0
Stock B.......1.0.....................3.2...................3.0
Values are reported as %changes
Given the above information, calculate the percent increase/decrease for the value of the stock from 2012 to 2013
so
(3.0/5.8)-1= 68.45% decrease from 2012 to 2013
Stock A.......4.8.....................5.8...................3.0
Stock B.......1.0.....................3.2...................3.0
Values are reported as %changes
Given the above information, calculate the percent increase/decrease for the value of the stock from 2012 to 2013
so
(3.0/5.8)-1= 68.45% decrease from 2012 to 2013
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If the value of Stock A increased by "3.0", then wouldn't the percent increase be 3%?
Just stop and think about it for a second. You said those are percentage changes for each year. In both 2012 and 2013 the stock increased by a few percent. Does it still make sense that the answer is a 68.45% decline overall? What you really need to do is multiply the two percentage increases together, as it (1.030)*(1.058) to get your overall growth.
That said, the question is a bit ambiguous, because it asks for the percent change from 2012 to 2013. I am assuming what it's really asking is the combined change in both those years (over a two year period). It could also be interpreted that the question wants the change in value from Dec. 31, 2012 until Dec. 31 2013.... (a one year period which is just 5.8%).
NumbersGuy
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