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# Krispy Kreme Doughnuts, Inc. Message Board

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• bluehorseshoe12 bluehorseshoe12 Apr 12, 2008 8:38 PM Flag

## The Great Blue / Davey Trading Challenge

Yes, in that scenario you've made 40%, again, assuming that each position's initial VALUE is equal. And that's what we're doing here. Each position has an equal value (or weight); as I said, we ARE NOT just trading one share of stock.

In your argument, you are just using a single share value (\$20 loss, plus a \$3 gain), and that's not what we're doing.

Gimme a break. If you put \$1000 in each of those positions, on the first one you lost 20% (\$200 loss), but on the 2nd one you DOUBLED your money. (\$1000 GAIN) So your net gain is \$800 on a total investment of \$2000-

\$800 / \$2000 = 40% GAIN

PS to you- Yes, I understand the difference between "mark-up" and "margin"; I'm a private-sector capitalist! :o)

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