Question

investing in equity through stocks
pear inc. stock price (2005 - 2013)
stock price (us dollars)
which statement is supported by the information in the graph?
the value of pear stock increased every year from 2005 to 2013.
pear was the most profitable stock that could be purchased between 2005 and 2013.
the price of pear stock declined from 2008 to 2009.
2008 was the best year to purchase pear stock.

Explanation:

Step1: Analyze first option

The stock price decreased from 2008 - 2009, so it did not increase every year from 2005 - 2013.

Step2: Analyze second option

The graph only shows Pear Inc. stock price, no comparison with other stocks for profitability is given.

Step3: Analyze third option

The stock price went down from 2008 to 2009 as seen on the graph.

Step4: Analyze fourth option

There is no information about dividends or future - price increase potential to say 2008 was the best year to buy.

Answer:

The price of Pear stock declined from 2008 to 2009.