Question

If a stock value starts at Rs. 50 and loses 50% on day 1, then 50% on day 2, what is the ending price?

• A. Rs. 12.50
• B. 0
• C. Rs. 25
• D. Rs. 100

Answer 1

Answer: (A)

Given :

Stock value starts at Rs. $50$

Loss on day one $=50\%of50=25$

Amount left after day one $=50-25=25$

Again, loss on day two $=50\%of25=12.5$

so, the amount left at the end $=25-12.5=12.5$

Hence, the ending price is $12.5$