Answered

Select the best answer for the question.
8. Ten weeks ago Jerry bought stock at 2112; today the stock is valued at 20%. We could say the stock is performing at which of the following?
O A. On par
B. Below par
C. Above par
O D. Par equality
highlighted on the review page)



Answer :

GinnyAnswer
To determine how the stock is performing, let's analyze the given information step-by-step:

1. Initial Stock Price: Jerry bought the stock at 2112 ten weeks ago.

2. Current Stock Value: Today, the stock is valued at 20% of its original price.

3. Calculating Current Stock Value:
- The current value of the stock can be found by calculating what 20% of the initial price is.
- 20% can be expressed as a decimal for the calculation, which is 0.20.
- Therefore, the current stock value = Initial Stock Price 20%
- This gives us: 2112 0.20 = 422.4

4. Comparing Current Value with Initial Value:
- The current value of the stock is 422.4.
- The initial value of the stock was 2112.

5. Performance Assessment:
- Since the current value (422.4) is less than the initial value (2112), the stock’s performance is considered Below Par.

Therefore, the best answer to the question is: B. Below par.