You make a $1,000 investment in the stock of ABC Inc. Over the next year the investment decreases by 60%. What percentage increase do you need in the following year on your holding to be back to $1,000?

What will be an ideal response?


We can employ the formula from the text: 100?

 = 100 ? 
 
Using this formula, where d is the initial decline in the investment (60), the answer is 150%.

Economics

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Economics