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If a stock's price drops from $120 to $90, what is the percentage loss?

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Question: If a stock\'s price drops from $120 to $90, what is the percentage loss?

Options:

  1. 25%
  2. 30%
  3. 20%
  4. 15%

Correct Answer: 30%

Solution: 

Percentage Loss = [(Old Price - New Price) / Old Price] * 100 = [(120 - 90) / 120] * 100 = 25%.

If a stock's price drops from $120 to $90, what is the percentage loss?

Practice Questions

Q1
If a stock's price drops from $120 to $90, what is the percentage loss?
  1. 25%
  2. 30%
  3. 20%
  4. 15%

Questions & Step-by-Step Solutions

If a stock's price drops from $120 to $90, what is the percentage loss?
  • Step 1: Identify the old price of the stock, which is $120.
  • Step 2: Identify the new price of the stock, which is $90.
  • Step 3: Calculate the difference between the old price and the new price: 120 - 90 = 30.
  • Step 4: Divide the difference by the old price: 30 / 120.
  • Step 5: Calculate the result of the division: 30 / 120 = 0.25.
  • Step 6: Convert the result to a percentage by multiplying by 100: 0.25 * 100 = 25.
  • Step 7: The percentage loss is 25%.
  • Percentage Loss Calculation – Understanding how to calculate the percentage loss based on the change in stock price.
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