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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (4271)	3/12/1999 10:18:00 PM
From: Rande Is	Respond to of 57584

PERCENTAGE BRAIN TEASER . . . Haven't tried it? CLICK HERE: Message 8273881 . . . .THIS POST CONTAINS THE ANSWERS . . . . . . . 1. A 20 dollar stock falls 50 percent to 10 bucks. . .In order for the stock to return to 20 dollars what percentage must it rise? Answer: 1) It must double, i.e. rise 100% 2. A 40 dollar stock rises 25 percent to 50 bucks . . . then it falls back down 25 percent. . . how much is the stock? Answer 2) $37.50 3. A stock is priced at 17.50 . . .the daytraders get hold of it, pushing it up 200 percent, before falling back 100 percent. . .how much is the stock? Answer 3) Anything that falls 100% is worth 0 4. You have 5000 dollars worth of a 50 dollar stock that rises 1 buck. You also have 5000 dollars in a 5 dollar stock that rises .25 cents. Which stock made you the most money? And what were the percentage yeilds of each? Answer 4) The $5 stock gives the greatest $ and % return ($250 with a 5% return vs. $100 with a 2% return). 5. You bought 200 shares of a stock at 50 bucks, which split 2 for 1, when it reached 100 dollars. . .it is now worth 75 dollars a share. What is the percentage gain from your investment? Answer 5) Now worth $30,000 for a gain of 200% 6. Like clockwork, a stock has defined a trading range of 15 on the low and 20 on the high. You buy 1000 shares at the low and sell them all at the high. You have a friend that shorts 1000 shares at the high and covers them all at the low. Which of you make more money? You or your friend? And what are the percentage yeilds for each of you? Answer 6) Both make the same amount - $5,000. But the one with the smallest base had the greatest percentage yield, i.e., the long trader came out with a 33%gain versus a 25% gain for the short. 1/2 point for "same amount" and 1/2 point for 33 pct. gain. 7. Like a Blind Sheep, you followed a pump and dumper into a Scammy Award winning OTC stock. . . you bought a truckload at 2.40. Through some unforeseen tragedy, almost immediately, the stock loses 75 percent of it's value. To get back your original investment, what percentage would the stock need to rise? Answer 7) The stock would have to quadruple, i.e., rise 300% 8. Two stocks. . .one gains 10 percent per day for 10 days. . . the other looses 10 percent per day for 10 days. Which stock moved the highest percentage over 10 days, the one that rose or the one that fell? Answer 8) "The one that rose." If cumulative off the base then the gainer would win (i.e.,11.1=1.1, 1.11.1=1.21 ...2.357*1.1=2.59) so the gainer goes up over 150% while the loser can only go down to approaching 100%. 9. You have written two books. From the first, you receive royalties of 5 percent of 90 percent of the wholesale price, which is half the retail. You sold exactly 100,000 copies thru bricks and mortar retail stores. After writing the second book, you have an artistic disagreement with your publisher and decide to print and market them them yourself on the internet. Printing costs 30 percent of the retail price and you spend another 20 percent of retail on portal deals, leaving the rest of the take to go directly to you. You sell 10,000 copies at the full retail price. Which book nets you the more money? How much more? Answer 9. The second book made 122.22 percent more money than the first. First you must calculate the percentage of RETAIL that you made. 5 percent of 90 percent of wholesale, which is 50 percent of retail is equal to 2.25 percent of retail. So from the first book, you make 2.25 percent of retail and from the second, you make 50 percent of retail. Your take from 100,000 units at 2.25 percent is the equivalent of 2,250 units, whereas your take from the 10,000 units at 50 percent is the equivalent of 5,000 units. The difference is 2,750 units. So to answer the question “how much more?” the best answer would be 122.22 percent more. 10. You need one more stock to balance out your portfolio, and after weeks of reading thru Edgars and listening to biased analyst reports and hyped interviews on CNBC, you catch a long-termer off the HOME thread that fits your portfolio to a t. Having recently announced a 3-for-2 stock split, you buy 1000 shares pre-split, then hopefully, plan to sell 1000 shares post-split at a price 25 percent higher than you originally paid. What is the symbol of the stock you bought? Answer 10. The answer was T [A. T. and T.] 3-for-2, long port and "suit to a T." EXTRA CREDIT: 1/2 point extra credit for the total percentage equity gain. Answer to extra credit: 25 percent total equity gain [regardless of whether you received cash or stock, the gain is the same] _______________________________________________________ A score of 10 to 10.5 is genius; 9 to 9.5 is brilliant; 8.0 to 8.5 is excellent; 7.0 to 7.5 is very good; 6.0 to 6.5 is good; 5.0 to 5.5 is fair; 4.0 and under should consider having others do their trading for them. Hope you all enjoyed teasing your brains. . . Rande Is <c> Copyright 1999 Rande Is/Blind Sheep Clothing Co.