You Invested $1,000 in the Stock Market One Year Ago

Multiple Choice

You invested $1,000 in the stock market one year ago. Today, the investment is valued at $1,250. What return did you earn? What return would you suffer next year for your investment to be valued at the original $1,000?

A) +25 percent, −20 percent, respectively
B) −25 percent, +20 percent, respectively
C) 125 percent, −25 percent, respectively
D) 125 percent, −20 percent, respectively