SOLUTION: Consider the following statement: Your stock portifolio dropped 25% last year, but rose 25% this year. Did you break even? Why or why not?

Question 439374: Consider the following statement: Your stock portifolio dropped 25% last year, but rose 25% this year. Did you break even? Why or why not?
Found 2 solutions by robertb, MathLover1:
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
No. Let x = the value of the portfolio before the drop.
Then after the increase the value of the portfolio is 0.75*1.25x = 0.9375x, which is still at a loss of 6.25%.
Answer by MathLover1(20855) (Show Source): You can put this solution on YOUR website!

No,you didn't break even.
Let x = the value of the portfolio before the drop was %
after the drop was %
Then after the increase the value of the portfolio is ,
%
which is still at a loss of %.
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