Friday, December 22, 2006 1:28:15 AM
You don't solve the ROI by reducing it down to a ratio (percentage). Remember Grifco's PR that talked about a 500% increase in production? It doesn't give you any true qualatative charecterisitc of a number. Percentage is just a ratio of numbers. It relates the value in the numerate to the value in the denominate.
The right way to solve this would be
(gain from stock one + loss from stock two)/(investment in stock one+investment in stock two) = ROI
=(99+-.099)/(100-.01) = 98%
And you thought you had me didn't you. If Tampa approves it, you have to think twice about you conclusions.
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