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

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

Options:

Correct Answer: 30%

Solution:

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

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

If a stock's price decreases 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 decrease in price by subtracting the new price from the old price: 120 - 90 = 30.
Step 4: Divide the decrease in price by the old price: 30 / 120.
Step 5: Convert the result from Step 4 into a percentage by multiplying by 100: (30 / 120) * 100.
Step 6: Calculate the final percentage: 30 / 120 = 0.25, and 0.25 * 100 = 25%.
Step 7: Conclude that the percentage loss is 25%.

Percentage Calculation – Understanding how to calculate percentage loss based on the change in price relative to the original price.