You are here:

# Word Problems/Price Increase

Question
Hello:

If a stock or mutual fund price is at \$21.20 and this is a \$0.06 increase or a 0.28% increase from the price of the previous day and another stock or mutual fund price is at \$59.01 and this is a \$0.13 increase or a 0.22% increase from the price of the previous day, which investment performed better?

The price is higher for one and lower for the other and the percentage is higher for one and lower for the other.

I believe the conventional thinking, and I concur, is the greater percentage increase is the better performer.

Consider extreme cases... suppose a \$100 stock increases by \$10, which is 10%... vs a \$1 stock that
increases by \$1, which is 100%.  The stock that *doubled* in value is a much bigger deal than the one
that increased by only 10%.

Questioner's Rating
 Rating(1-10) Knowledgeability = 10 Clarity of Response = 10 Politeness = 10 Comment Thanks for the great reply and helpful example!

Word Problems

Volunteer

#### Abe Mantell

##### Expertise

Hello, I am a college professor of mathematics and regularly teach all levels from elementary mathematics through differential equations, and would be happy to assist anyone with such questions!

##### Experience

Over 15 years teaching at the college level.

Organizations
NCTM, NYSMATYC, AMATYC, MAA, NYSUT, AFT.

Education/Credentials
B.S. in Mathematics from Rensselaer Polytechnic Institute
M.S. (and A.B.D.) in Applied Mathematics from SUNY @ Stony Brook