Questions:
Q-1: A stock has fallen 30% this year after rising 80% last year. What is the net return? Is it 50%?
Q-2: If a stock you purchased is down, say 80%, how much it should rise to bring it back to your acquisition cost i.e., how much percent returns are required to bring it to the same level? Is it 80% , 100% or 200%?
Q-3: You own a stock which has continuously risen
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Learning to managing money intelligently and improving our financial lives also involves feeling comfortable while dealing with numbers. For those who invest in stocks, try this test to judge your Financial IQ:
Questions:
Q-1: A stock has fallen 30% this year after rising 80% last year. What is the net return? Is it 50%?
Q-2: If a stock you purchased is down, say 80%, how much it should rise to bring it back to your acquisition cost i.e., how much percent returns are required to bring it to the same level? Is it 80% , 100% or 200%?
Q-3: You own a stock which has continuously risen