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Prices of Stock

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Please help with the following with computations in order to understand.

Two years ago, General Materials and Standard Fixtures' stock prices were the same. Over the first year, General Materials' stock price increased by 10 percent while Standard Fixtures' stock price decreased by 10 percent. Over the second year, General Materials' stock price decreased by 10 percent and Standard Fixtures' stock price increased by 10 percent. Do these two stocks have the same prices today? Explain.

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Solution Summary

The answer discusses the concept of price of stock

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Let us assume that the the two years ago the Price was $100

The Price of General Materials after two years will be:

a) After first year
Increased by 10%, Hence it will be
Original ...

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