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What is the difference (a minus b)?

What is the difference (a minus b)?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Using single-period arithmetic returns, and starting with $100, calculate: (a) a 30% gain followed by a 20% loss ("average" 5% per period gain) (b) a 5% gain followed by a 5% gain ("average" 5% per period gain) What is the difference (a minus b)?
Transcribed Image Text:Using single-period arithmetic returns, and starting with $100, calculate: (a) a 30% gain followed by a 20% loss ("average" 5% per period gain) (b) a 5% gain followed by a 5% gain ("average" 5% per period gain) What is the difference (a minus b)?
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