Investor behaviour · Question 12 of 12

Which statements about recovering price losses are correct?

2 answers are correct. Hard

Show answer

Answer

  • A After a 50% loss, a 100% rise is needed
  • B After a 20% loss, a 25% rise is needed

Explanation

After a 50% loss, 100 euros become 50 euros, and the value must double to get back to 100 euros. After a 20% loss, 80 euros remain, and 20 euros more is 25% of that. The larger the loss, the more the price has to rise afterwards.

Certifications & exams

Which exam comes next?

You can already practise for 19 exams, and 21 are up for a vote. See all certifications with their official information, cast your vote or suggest your exam.

See all certifications