4 ms·

Sorry for a maybe dumb question but what is the logic for 43% gain needed?

• jedberg 7y ago
  100 - 30 = 70 70 * .43 = 30.1 70 + 30.1 = 100.1
• acchow 7y ago
  30% loss from 100 is 70. 30% of 70 is 21. So a 30% gain at 70 gets you to 91. 1/.7 = 1.429
• deleted 7y ago
  [deleted]
• avalys 7y ago
  If the market drops by 50%, e.g. from 20,000 to 10,000, it will need to increase by 100% from that point in order to recover (from 10,000 back to 20,000).
• ComputerGuru 7y ago
  Because gains or drops are a percentage of where they were at just before, not from a fixed value.
• nodesocket 7y ago
  See this article on investopedia[1]. [1] https://www.investopedia.com/investing/selling-a-losing-stock/ https://www.investopedia.com/investing/selling-a-losing-stoc...
• bkberry352 7y ago
  100 -> 80 is a 20% decrease ((80-100)/100). 80 -> 100 is a 25% increase ((100-80)/80).
• czep 7y ago
  Math: 30% drop means going from 100 to 70. Now to get back up to 100, you need a 43% gain (30/70).
• greenshackle2 7y ago
  1 * (1 - 0.3) = 0.7 0.7 * (1 + 0.43) ~= 1 It might be more intuitive with round numbers. If you lose 50%, you need to double (+100%) to get back to your original value.
• deleted 7y ago
  [deleted]
• deleted 7y ago
  [deleted]
• deleted 7y ago
  [deleted]