Stock Value Changes and Calculations

The video tutorial explains how a stock's value changes when it experiences a 10% loss followed by a 10% gain. Starting with an initial value of $100, the stock drops to $90 after a 10% loss. Then, a 10% gain on the reduced value of $90 results in a new value of $99. This demonstrates that the stock value is ultimately down by $1 or 1% from its original value, illustrating the impact of consecutive percentage changes on stock value.

What is the initial question posed about the stock's value after a 10% drop and a 10% gain?

• Is the stock value doubled?

• Is the stock value unchanged?

• Is the stock value lower?

• Is the stock value higher?

If a stock valued at $100 loses 10%, what is the new value?

• $85

• $90

• $95

• $80

How do you calculate a 10% loss on a stock valued at $100?

• Subtract 10

• Add 10

• Multiply by 0.1

• Multiply by 0.9

After a 10% gain on a stock valued at $90, what is the new value?

• $90

• $95

• $100

• $99

What is the final percentage change in the stock value from the original $100 after both a 10% loss and a 10% gain?

• 0%

• 1% decrease

• 1% increase

• 10% decrease