overall percentage change and mean: annual percentage changes in company share price

[shanebarry92]

Hey!


I'm totally stuck with answering a question, and can't find any article online explaining how to do this, can anyone explain or link me to article so i can answer this

The datasets below show annual percentage changes in share price for company A over7 years, and company B over 6 years. Calculate (a) the overall percentage change and(b) mean percentage change for each dataset:

(i) 5%, 4%, –2%, –11%, 10%, 14%, 23%

(ii) 40%, 20%, 10%, 5%, 2.5%, 1.25%

 

[stapel]

I'm totally stuck with answering a question, and can't find any article online explaining how to do this, can anyone explain or link me to article so i can answer this

To learn how to work with "percent of" exercises, try here.

The data sets below show annual percentage changes in share price for company A over 7 years, and company B over 6 years.

. . .Company A: 5%, 4%, –2%, –11%, 10%, 14%, 23%

. . .Company B: 40%, 20%, 10%, 5%, 2.5%, 1.25%

Calculate (a) the overall percentage change and (b) the mean percentage change for each data set.

For part (a), pick some starting value; say, $100. Then multiply by the first percentage change. By how much did the value increase or decrease? So what is the new value? Then multiply that new value by the next percentage change. By how much did the value increase or decrease? So what is the new value? Continue until you've done all of the multiplications and additions/subtractions. Compare this final value to the original value. What is the absolute change? (Hint: Subtract.) Then what is the percentage change? (Hint: Divide.)

For part (b), they're just asking you to find the mean of the listed value. Do the standard process of adding and then dividing.

If you get stuck, please reply showing your work in following the step-by-step directions above. Thank you!

 

[shanebarry92]

For part (a), pick some starting value; say, $100. Then multiply by the first percentage change. By how much did the value increase or decrease? So what is the new value? Then multiply that new value by the next percentage change. By how much did the value increase or decrease? So what is the new value? Continue until you've done all of the multiplications and additions/subtractions. Compare this final value to the original value. What is the absolute change? (Hint: Subtract.) Then what is the percentage change? (Hint: Divide.)

Thank you so much! When I did this, I used 100 as starting value and got a data set 105,109.20,107.01,95.23,104.75,119.41,146.87

A. percentage change = 100-146.87 = 46.87 46.87/100x100 = 46.87%
b. I think im doing something wrong i add all the % changes and divide by 7 and get 6.14%.

What do you think? Thanks again!

 

[stapel]

Thank you so much! When I did this, I used 100 as starting value and got a data set 105,109.20,107.01,95.23,104.75,119.41,146.87

A. percentage change = 100-146.87 = 46.87 46.87/100x100 = 46.87%
b. I think im doing something wrong i add all the % changes and divide by 7 and get 6.14%.

What do you think? Thanks again!

The average change per year is only and exactly that: the average. If you compounded that average change over seven years, how would that compare with the overall change?