Dimitri paid the same price for five different stocks. The table shows the change in the price of the stocks since he purchased them.

Question

A 2-column table with 5 rows. Column 1 is labeled Stock with entries A, B, C, D, E. Column 2 is labeled Change in price with entries negative 4.15, positive 1.30, positive 8.75, negative 10.10, negative 3.55.

Which stock is closest to the purchase price?

Stock A
Stock B
Stock C
Stock D

Answer 1

To determine which stock is closest to the purchase price, we need to evaluate the change in price for each stock. Assume each stock was purchased at a price of \( P \).

1. Stock A: Change in price = -4.15
   Price = \( P - 4.15 \)

2. Stock B: Change in price = +1.30
   Price = \( P + 1.30 \)

3. Stock C: Change in price = +8.75
   Price = \( P + 8.75 \)

4. Stock D: Change in price = -10.10
   Price = \( P - 10.10 \)

5. Stock E: Change in price = -3.55
   Price = \( P - 3.55 \)

Next, we compare how far each adjusted price is from the purchase price \( P \):

• Stock A: \( |P - (P - 4.15)| = 4.15 \)
• Stock B: \( |P - (P + 1.30)| = 1.30 \)
• Stock C: \( |P - (P + 8.75)| = 8.75 \)
• Stock D: \( |P - (P - 10.10)| = 10.10 \)
• Stock E: \( |P - (P - 3.55)| = 3.55 \)

Now, we look for the smallest distance:

• Stock A: 4.15
• Stock B: 1.30
• Stock C: 8.75
• Stock D: 10.10
• Stock E: 3.55

The stock closest to the purchase price is Stock B with a change of +1.30.