You decide you will buy a stock only if it shows an overall increase over the next 30 days. The first 10 days it has an average daily increase of $0.30. The next 10 days it has an average daily decrease of $0.45. The last 10 days, It has an average daily increase of $0.25.
How much did the stock change over the first 10 days?
How much did the stock change over the next 10 days?
How much did the stock change over the last 10 days?
How much did the stock change altogether?
Should you buy the stock?
PLZ HELP
To determine how much the stock changed over a given period, you need to calculate the total change. The total change is obtained by multiplying the average daily change by the number of days.
Here are the calculations for each period:
First 10 days:
Average daily increase = $0.30
Number of days = 10
Change over the first 10 days = Average daily increase * Number of days
= $0.30 * 10
= $3.00
Therefore, the stock changed by $3.00 over the first 10 days.
Next 10 days:
Average daily decrease = -$0.45
Number of days = 10
Change over the next 10 days = Average daily decrease * Number of days
= -$0.45 * 10
= -$4.50
Therefore, the stock changed by -$4.50 over the next 10 days (which indicates a decrease).
Last 10 days:
Average daily increase = $0.25
Number of days = 10
Change over the last 10 days = Average daily increase * Number of days
= $0.25 * 10
= $2.50
Therefore, the stock changed by $2.50 over the last 10 days.
To calculate the overall change, you need to sum up the changes from each period:
Overall change = Change over the first 10 days + Change over the next 10 days + Change over the last 10 days
= $3.00 + (-$4.50) + $2.50
= $0.00
Therefore, the stock did not change overall, as the total change is $0.00.
Based on the condition mentioned, where you will only buy the stock if it shows an overall increase over 30 days, you would not buy the stock in this case, as it did not show an overall increase.