A broker invested her own money in the stock market. During the first year, she increased her stock market wealth by 50 percent. In the second year, largely as a result of a slump in the stock market, she suffered a 30 percent decrease in the value of her stock investments. What was the net increase or decrease on her overall stock investment wealth by the end of the second year?  Options.
A) −5%  B) 5%  C) 15%  D) 20%  E) 80%
Assume the broker invested $100.   After year 1 (50% increase in wealth): $100 * 0.5= 
<gadget id="calculator">100 * 0.5</gadget>
<output>50</output>
$50 increase + $100= $150   After year 2 (30% decrease in wealth): $150 * 0.3= 
<gadget id="calculator">150 * 0.3</gadget>
<output>45</output>
$45; $150 - $45 decrease = $105   Net increase 150 -  45= 
<gadget id="calculator">150 -  45</gadget>
<output>105</output>
$105   Net increase= $105/$100 - 1 = 5%   Answer is 5%.
<result>B</result>
A broker invested her own money in the stock market. During the first year, she increased her stock market wealth by 50 percent. In the second year, largely as a result of a slump in the stock market, she suffered a 30 percent decrease in the value of her stock investments. What was the net increase or decrease on her overall stock investment wealth by the end of the second year?