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29 Mar 2021, 06:00
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
98% (00:43) correct
3%
(01:00)
wrong
based on 40
sessions
History
Date
Time
Result
Not Attempted Yet
If your stock portfolio increased by 25% and then decreased by 20%, what percent of the original value would your new stock portfolio have?
A. 80%
B. 90%
C. 100%
D. 110%
E. 120%
A. 80%
B. 90%
C. 100%
D. 110%
E. 120%
hykhan
Current Student
Joined: 18 Dec 2020
Last visit: 04 Aug 2022
Posts: 87
Given Kudos: 28
Location: Canada
Concentration: Healthcare, Entrepreneurship
Schools: Judge '23 (M$) INSEAD Aug 22 intake (A)
GMAT 1: 700 Q47 V39
GMAT 2: 720 Q48 V41
GPA: 2.8
WE:Project Management (Pharmaceuticals and Biotech)
Products:
29 Mar 2021, 06:29
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Fastest way is using $100
$100 x 1.25 = 125
$125 x 0.2 = $25
$125 - $25 = $100
Answer is C
Posted from my mobile device
$100 x 1.25 = 125
$125 x 0.2 = $25
$125 - $25 = $100
Answer is C
Posted from my mobile device
31 Mar 2021, 07:50
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Solution
Given
We are given that:
• your stock portfolio increased by 25% and then decreased by 20%
To find
We need to determine
• what percent of the original value your new stock portfolio would have
Approach and Working out
Let the original value of the stock profile be 100.
- • Then, the value after 25% increase = 100 + 25% of 100 = 125
• And the value of another 20% decrease = 125 - 20% of 125
- o 125 – 25 = 100
Overall, the value of the stock did not change!
- • Final value = 100 and Original value = 100
Suppose Final value = x% of the original value
- • 100 = x% of 100
• x = 100
Thus, option C is the correct answer.
Correct Answer: Option C
