Money & WorkFact

After minus 50% you need plus 100%.

Losses and gains aren't symmetric. If an investment falls from €100 to €50, that's a 50% loss. To get back to €100 it has to double, a 100% gain. After a 20% loss you need 25%, after a 10% loss still 11%. The deeper the crash, the disproportionately larger the climb back.

Useful: Avoiding big losses matters more than chasing big gains.

Source: en.wikipedia.org

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Question on this card

An investment drops 25%. How much must it rise to recover?

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Correct: 33%

From €75 back to €100 is a €25 gain, which is 33% of €75.

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