You invested $2,000 in the stock market one year ago. Today, the investment is valued at $9,500. What return did you earn? What return would you need to suffer next year for your investment to be valued at the original $2,000?
A) −78.95 percent, 0 percent
B) 375 percent, −78.95 percent
C) 250 percent, −51.8 percent
D) −78.95 percent, 100 percent

Question

Quizplus · Accepted Answer

The return earned in the first year is calculated as (($9,500 - $2,000) / $2,000) * 100 = 375%. To return to the original value of $2,000 from $9,500, the investment would need to lose 78.95% of its value, calculated as (($2,000 - $9,500) / $9,500) * 100.

You Invested $2,000 in the Stock Market One Year Ago