A percentage loss needs a larger percentage recovery
After an asset loses value, the percentage gain needed to recover is calculated from a smaller base. A fall from ₹100 to ₹80 is a 20% loss, but returning from ₹80 to ₹100 requires a 25% gain. Equal percentage falls and rises do not cancel because their starting amounts differ.
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The denominator changes after the fall
A ₹20 decline from ₹100 is 20% of the original value. Once the asset is worth ₹80, recovering that same ₹20 requires a gain equal to 25% of the new value.
The general recovery calculation is loss fraction divided by one minus the loss fraction. For a 20% loss, that is 0.20 divided by 0.80, giving 25%.
A 50% loss needs a 100% gain to recover: ₹100 falls to ₹50, and ₹50 must then double.
This also explains why a 20% gain followed by a 20% loss leaves ₹100 at ₹96. The gain takes it to ₹120; the loss removes ₹24. Percentage changes multiply through changing balances rather than cancelling like equal additions and subtractions of a fixed rupee amount.