2. A bear walks south for one kilometer, then it walks west for one kilometer, then it walks north for one kilometer and ends up at the same point from which it started. What color was the bear?
3. An investor trading through a discount stock broker that charges $10.00 Dollars per transaction bought 200 shares of Vola Tile Corporation at $50.00 Dollars per share. The stock quickly increased in value by 50%, but then lost 40% of its value. The investor sold the stock. How much money did the investor gain or lose?
Answer 2: The bear was white because it was a polar bear. The only place on earth where a bear can go south, west and north equal distances and end up where it started is the North Pole.
Actually, the bear could go west two or five kilometers instead of one and it would not make any difference -- the bear would be making a circle around the North Pole. East and West you travel along parallels which are circles equidistant from the poles. North and South you travel along meridians which are circles that cross both the north and the south poles.
Answer 3: The cost of 200 shares at $50.00 Dollars each is $10,000.00 Dollars.The 50% gain on $10,000 is $5,000, making the new total $15,000.00 Dollars.
The 40% loss on $15,000 is $6,000, reducing the total amount to $9,000.00 Dollars.
This is a $1000.00 Dollar loss, plus $10 Dollars for the Buy transaction, and $10 Dollars for the Sell transaction.
The investor lost a total of $1020.00 Dollars.