Learn / Library / Mental math

Climbing back after a drawdown

Mental mathHard

An asset falls by $36%$ . By what percentage of its depressed level must it then rise to return exactly to its starting level? Give the number of percent.

Checking an answer needs JavaScript. The hint and the solution open without it.

Hint

Think in terms of the multiplier you need.

Solution

After the fall the level is $0.64$ of the start.
To return to $1$ we need a multiplier of $1 \div 0.64 = 100 \div 64$ .
$100 \div 64 = 1.5625$ , since $64 \times 1.5625 = 100$ .
The required rise is $56.25$ percent.

Answer: $56.25$

Next question Back to the library