Find all School-related info fast with the new School-Specific MBA Forum

It is currently 23 Jul 2014, 06:33

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A certain portfolio consisted of 5 stocks, priced at $20,

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Current Student
User avatar
Joined: 11 May 2008
Posts: 560
Followers: 7

Kudos [?]: 19 [0], given: 0

GMAT Tests User
A certain portfolio consisted of 5 stocks, priced at $20, [#permalink] New post 19 Jul 2008, 23:15
A certain portfolio consisted of 5 stocks, priced at $20, $35, $40, $45 and $70, respectively. On a given day, the price of one stock increased by 15%, while the price of another decreased by 35% and the prices of the remaining three remained constant. If the average price of a stock in the portfolio rose by approximately 2%, which of the following could be the prices of the shares that remained constant?

A) 20, 35, 70

B) 20, 45, 70

C) 20, 35, 40

D) 35, 40, 70

E) 35, 40, 45
Current Student
User avatar
Joined: 12 Jun 2008
Posts: 288
Schools: INSEAD Class of July '10
Followers: 5

Kudos [?]: 35 [0], given: 0

GMAT Tests User
Re: check this out [#permalink] New post 20 Jul 2008, 00:44
Make the smallest decrease and the highest increase, and you have:

- for the smallest: 35% of $20 = $7 decrease
- for the highest: 15% of $70 = $10.5 increase

==> maximum increase of the portfolio is $3.5 total

Total value of the portfolio was $20+$35+$40+$45+$70 = $210

So the maximun increase corresponds to 3.5/210 = 1.7%

You cannot be closer to 2%, thus it is $20 that decrease and $70 that increase

==> Answer is (E)
Current Student
User avatar
Joined: 11 May 2008
Posts: 560
Followers: 7

Kudos [?]: 19 [0], given: 0

GMAT Tests User
Re: check this out [#permalink] New post 20 Jul 2008, 00:53
yep!!! good one oski
Senior Manager
Senior Manager
User avatar
Joined: 16 Aug 2004
Posts: 329
Location: India
Followers: 1

Kudos [?]: 38 [0], given: 0

GMAT Tests User
Re: check this out [#permalink] New post 20 Jul 2008, 04:07
E, similar reasoning.
Retired Moderator
User avatar
Joined: 18 Jul 2008
Posts: 997
Followers: 8

Kudos [?]: 59 [0], given: 5

GMAT Tests User
Re: check this out [#permalink] New post 21 Jul 2008, 04:31
How did you know which price to increase and decrease?

Is it by process of elimination (trying each one by one), or is there a quicker method.

Oski wrote:
Make the smallest decrease and the highest increase, and you have:

- for the smallest: 35% of $20 = $7 decrease
- for the highest: 15% of $70 = $10.5 increase

==> maximum increase of the portfolio is $3.5 total

Total value of the portfolio was $20+$35+$40+$45+$70 = $210

So the maximun increase corresponds to 3.5/210 = 1.7%

You cannot be closer to 2%, thus it is $20 that decrease and $70 that increase

==> Answer is (E)
Manager
Manager
User avatar
Joined: 04 Apr 2008
Posts: 229
Location: Pune
Followers: 2

Kudos [?]: 18 [0], given: 3

GMAT Tests User
Re: check this out [#permalink] New post 21 Jul 2008, 05:05
generally we start with the midlle terms and then you move on one side......But depends upon the experience that one selects the limits.....POE

_________________

Every Problem Has a Sloution So keep working
AB

Current Student
User avatar
Joined: 12 Jun 2008
Posts: 288
Schools: INSEAD Class of July '10
Followers: 5

Kudos [?]: 35 [0], given: 0

GMAT Tests User
Re: check this out [#permalink] New post 21 Jul 2008, 14:09
bigfernhead wrote:
How did you know which price to increase and decrease?

Is it by process of elimination (trying each one by one), or is there a quicker method.

I decreased the minimum and increased the maximum, therefore the gap I got is the biggest we can get. And it is still not sufficient to reach the 2% mark : so this is the answer.

A more general method if you do not see it from the begining is as follow :

- compute 2% of the total (here 210*2% = 4.2)

- write down the five numbers and compute for each one what it means to increase it by 15% or decrease it by 35%

20 : +3 ; -7
35 : +5.25 ; -12.25
40 : +6 ; -14
45 : +6.75 ; -15.75
70 : +10.5 ; -24.5

- then, "play" with the 10 numbers you get to be as close as possible to this 4.2 ;)
Re: check this out   [#permalink] 21 Jul 2008, 14:09
    Similar topics Author Replies Last post
Similar
Topics:
4 Experts publish their posts in the topic Samantha's investment portfolio consists of three stocks joylive 3 24 Nov 2012, 08:15
2 Experts publish their posts in the topic If x equally priced shares of a certain stock were valued enigma123 2 15 Mar 2012, 00:30
Portfolio Prices enigma123 6 17 Nov 2011, 15:31
17 Experts publish their posts in the topic A certain portfolio consisted of 5 stocks, priced at $20, snaps 11 04 Dec 2008, 17:25
A certain portfolio consisted of 5 stocks, priced at $20, GK_Gmat 7 03 Nov 2007, 04:26
Display posts from previous: Sort by

A certain portfolio consisted of 5 stocks, priced at $20,

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.