7

I.e., $100 decreased by 20% requires an increase of (1/(1-0.2))-1) to return to $100. Is there a simple name that refers to this?

  • 1
    Is this about leveraged ETFs? :) – fennec Mar 1 '11 at 6:43
6

Well, in math terms, it's the reciprocal. A 20% drop (80% of original value) needs a 25% increase to break even. .8 and 1.25 are reciprocals.

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