ng.cengage.com 0 Finance Chegg Extra credit TTU Email E raider Blackboard WF Fac
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ng.cengage.com 0 Finance Chegg Extra credit TTU Email E raider Blackboard WF Facebook Youtube Twitter Twitch H XIM4 Grove RIZE Cengage Mind Tap - Cengage Learning MINDTAP Korey Wilburn" Getting Started Mathematics I e Due Today at 11:59 PM CST New Value Base Value Base Value Percentage Change iy x 100% Suppose a stock traded for s40 a share last year, but today the price has risen to $44. In this case, the percentage change is: Percentage Change, %-($44-$40) / $40-10% If a stock price falls from $20 to $18.50, the percentage change in stock price is Similarly, suppose a bike company produced 2,000 b kes this year, but it expects sales gowth of 12% for next year. Next year's expected bike sales are Percentages and Percentage Points Students often get confused when ta king about percentage changes, especially when it is a percentage measure being changed. Suppose the inflation rate in 2000 was 5% and in 2001 the ination rate was 6%. How much did nflation change by between 2000 and 2001? The inflation rate has increased by 1 percentageont, from 596 to 6%. It is also correct to say that the inflation rate increased by 20% ((6%-5%) / S%-(0.06-0.05) / 0.05-20%). hen you talk about percentages and changes, be sure that you are asking and answering the right question. Percentage change and absolute change Suppose that in Year 1, Bob's Burritos' daly saes were $1,000 and Betty's Burgers' daily sales were $2,000. In Year 2, Bob's daily sales increased to $1,400 and Betty's daily sales increased to s2,600. Who experienced the greatest change in daily sales? Betty's day saes inoeased by $2,600-$2,000-$600, while Bob's sales increased by $1,400-$1,000-S400. So, Betty's Burgers experienced the larger "absalute" change in sales. However, Bob's Burritos started with much smaller sales, so its "percentage change was greater. A $400 increase on S1,000 of salcs is greater than a $600 Increasc on $2,000 salcs. Bob's Burritos' %& in sales- Betty's Burgers' in sales =Explanation / Answer
Answer 1) Change in stock price = (Final Price – Initial Price) / Initial Price = (18.5 – 20) / 20 = - 7.5%
Answer 2) Next year expected sales growth = 2000 * (1+0.12) = 2240
Answer 3) % change in sales for Bob’s Burito = 400 / 1000 = 40%
% change in sales for Betty’s Burgers = 600/2000 = 30%
Answer 4) Weighted average for te given example = [2/5 * 0.02 + 2/5 * 0.08 + 1/5 * 0.35] = 11%
Answer 5) (I would require options to complete the given questions (Drop down options)), the average return calculated is given as = (7% + (-4%)+9%+33%)/ 4 =11.25%
Answer 6) Portfolio return for last year is
a) = [0.25*0.33 +0.10*0.16+0.35*0.09+0.10*(-0.07)+0.20*0.12] = 14.70%
b) Which is the weighted average
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