Ten weeks ago Jerry bought stock at 211/2; today the stock is valued at 203/8. We could say the stock is performing at which of the following?

Question

Question 9 options:

A)

On par

B)

Par equality

C)

Above par

D)

Below par

Answer 1

To determine how the stock is performing, we need to compare its initial purchase price to its current value.

Jerry bought the stock at \(21 \frac{1}{2}\), which can be converted into an improper fraction or decimal:

• \(21 \frac{1}{2} = \frac{43}{2} = 21.5\)

The current value of the stock is \(20 \frac{3}{8}\):

• \(20 \frac{3}{8} = \frac{163}{8} = 20.375\)

Next, we can assess whether the stock is performing "above par," "on par," "par equality," or "below par" based on its purchase price and current value:

• Above par: This would mean the current value is greater than the purchase price.
• On par or Par equality: This would mean the current value equals the purchase price.
• Below par: This means the current value is less than the purchase price.

Since \(20.375 < 21.5\), the stock's current value is less than its purchase price.

Thus, we can conclude that the stock is performing D) Below par.