Answer:
Both stocks will have a net loss of 9%
Complete statement and question:
Which is better: having a stock that goes up 30% on Monday than drops 30% on Tuesday, or a stock drops 30% on Monday and goes up 30% on Tuesday? In each case, what is the net percent gain or loss?
Source:
Previous question that can be found at brainly
Step-by-step explanation:
Four our analysis, let's assume a initial price of $ 10 for both stocks
Stock A
Price on Monday when stock market opens = $ 10
Price on Monday when stock market closes = 10 + 0.3 * 10 = 10 + 3 = $ 13
Price on Tuesday when stock market opens = $ 13
Price on Tuesday when stock market closes = 13 - 0.3 * 13 = 13 -3.9 = $ 9.10
The stock had a net loss of $ 0.90 or 9%
Stock B
Price on Monday when stock market opens = $ 10
Price on Monday when stock market closes = 10 - 0.3 * 10 = 10 - 3 = $ 7
Price on Tuesday when stock market opens = $ 7
Price on Tuesday when stock market closes = 7 + 0.3 * 7 = 7 + 2.10 = $ 9.10
The stock had a net loss of $ 0.90 or 9%
