If a stock drops 50% in a year, what % does it have to go up the next year to get back to even?
That's right, it has to go up 100%.
What's the average of -50% and 100%?
That's right, 25%. Pretty impressive!
What was the ACTUAL return?
$0
If a stock drops 50% in a year, what % does it have to go up the next year to get back to even?
That's right, it has to go up 100%.
What's the average of -50% and 100%?
That's right, 25%. Pretty impressive!
What was the ACTUAL return?
$0