- Identify the daily changes as \(+3.50, -3.70, +3.30, -3.40\).
- Sum the individual daily changes to find the net change: \(\text{Net Change} = 3.50 - 3.70 + 3.30 - 3.40\).
- Calculate the total: \(6.80 - 7.10 = -0.30\).
- The final net change is \(\boxed{\$-0.30}\).
Explanation
- Problem Analysis and Data Overview
The problem asks for the net change in a company's stock price over a four-day period. We are given the daily changes in stock price as follows:
- Day 1: Increase of \(\$3.50\)
- Day 2: Decrease of \(\$3.70\)
- Day 3: Increase of \(\$3.30\)
- Day 4: Decrease of \(\$3.40\)
To find the net change, we sum these individual daily changes, treating increases as positive values and decreases as negative values.
- Setting Up the Summation
We define the individual changes as:
- \(C_1 = 3.50\)
- \(C_2 = -3.70\)
- \(C_3 = 3.30\)
- \(C_4 = -3.40\)
The net change is the sum of these four values:
\(\text{Net Change} = C_1 + C_2 + C_3 + C_4\)
\(\text{Net Change} = 3.50 + (-3.70) + 3.30 + (-3.40)\)
- Calculating the Result
Calculating the sum:
\(\text{Net Change} = 3.50 - 3.70 + 3.30 - 3.40\)
First, add the positive values: \(3.50 + 3.30 = 6.80\).
Next, add the negative values: \(-3.70 - 3.40 = -7.10\).
Finally, add the results: \(6.80 - 7.10 = -0.30\).
The net change in the stock price over the four days is \(\$-0.30\).
Examples
Calculating the net change in stock prices is a fundamental task for investors and financial analysts. It allows them to quickly evaluate the overall performance of an asset over a specific period, helping them make informed decisions about whether to hold, buy, or sell. By tracking daily fluctuations, one can better understand market volatility and long-term trends, which is essential for managing personal finances or professional portfolios. For example, if a stock starts at \(\$50\) and has a net change of \(\$-0.30\), the final price would be \(\$50 - \$0.30 = \$49.70\).