You start with a $1,000 portfolio; it loses 50% over the next year, the following year it gains 50% in value. At the end of two years your portfolio is worth:

Question

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After the first year, a 50% loss on a $1,000 portfolio reduces its value to $500. The following year, a 50% gain on the $500 value increases it by $250 (50% of $500), resulting in a total value of $750.

You Start with a $1,000 Portfolio; It Loses 50% Over