Question 356204: The price of a stock is down 5% today. What percent increase tomorrow would return
the stock to its original price? Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! The price of a stock is down 5% today. What percent increase tomorrow would return the stock to its original price?
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p = starting price
Down 5% --> 0.95p
Using 0.95p as the base, increasing to 1.0p is an increase of (1 - 0.95)/0.95
= 5/95 = 1/19
=~ 0.05263 = 5.26%
