What is the investor's profit at the end of the week in the following case:An investor bought a stock for $4 on Monday. The next day the price...

The price of the stock on Monday when they were bought is
$4. It crashes by 15% on Tuesday to reach $4*(1 – 15%) =
$4*0.85.

The price recovers by 5% over the rest of the
week. For three days the price rises 5% everyday so the price at the end of the week
is:

$4*0.85*(1.05)^3 =
$3.93

For the original price of $4 at which the stock was
bought the price at the end of the week is $3.93.The investor’s loss is (4 – 3.93)*100/4
= 1.75%

Therefore the investor has not made a
profit but a loss of 1.75%