A stock price increased by 20% on Monday and then decreased by 10% on Tuesday. What was the net percentage change in the stock price over the two days?

✓ Correct Answer: Option B

Let the initial price be P. After a 20% increase, the price is P * 1.20. After a 10% decrease from this new price, it becomes (P * 1.20) * 0.90 = 1.08P. This represents an 8% net increase.