As investment loss increases, the gain required to restore the loss increases at an escalating rate.
Please Note: Needed % gain to restore loss = [1 / (1 – % Loss)] – 1 For example, the needed gain to restore a 10% loss can be expressed as: [1 / (1 – .10)] – 1 = .1111 or 11.11% Thus, the needed gain to restore the 10% loss is 11.11%. As the loss gets bigger, the needed gain to restore the loss increases at an increasing rate.
As investment loss increases, the gain required to restore the loss increases at an escalating rate.
Please Note: Needed % gain to restore loss = [1 / (1 – % Loss)] – 1 For example, the needed gain to restore a 10% loss can be expressed as: [1 / (1 – .10)] – 1 = .1111 or 11.11% Thus, the needed gain to restore the 10% loss is 11.11%. As the loss gets bigger, the needed gain to restore the loss increases at an increasing rate.