Question

Cynthia is interested in investing in Clothing Unlimited Inc. Which attribute from the stock quote can Cynthia use to determine how the stock has performed over the past year?
A. current price
B. net change
C. open price
D. a positive or negative result for the one-year change
E. previous close price

Answer 1

Answer:

D. a positive or negative result for the one-year change

Explanation:

The most relevant parameter of a stock's performance is the stock's returns. If a stock has been consistent in producing good returns,  the past financial year's results play a big role in determining whether to invest in its stock or not.

If Cynthia is interested in investing in Clothing Unlimited stock, she needs to look at its past performances and compare it with lay year's results. If the stock has been yielding consistent positive results, there is a big possibility that the trend will continue into the future.