Monday, January 30, 2012

Calculate percentage increase of a stock value?

If I buy a stock for $100.00 and it appreciates to $200.00, what is the best formula to calculate the % increase?



(200-100)/100



or



(200-100)/((200-100)/2)Calculate percentage increase of a stock value?
The first one is the correct one:



(200-100)/100 = 100/100 = 1



In order to convert that to a percentage (which means per hundred), you then need to continue:

1 = 100/100 = 100 per cent



It is a coincidence that in this case you go from

100/100 = 1 = 100/100.



To illustrate, if a stock had started from some number other than 100, say, from 25 to 32, the solution would have been:

(32-25)/25 = 7/25 = .28 = 28/100 = 28 per cent,



So, the full solution is:

(200-100)/100 = 100/100 = 1 = 100/100 = 100 per cent
  • d3100
  • google translations
  • No comments:

    Post a Comment