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Over the last two years who made more investing in stock [#permalink]
19 Oct 2012, 05:06
2
This post was BOOKMARKED
00:00
A
B
C
D
E
Difficulty:
65% (hard)
Question Stats:
46% (01:56) correct
54% (01:24) wrong based on 181 sessions
Over the last two years who made more investing in stock market Lisa or Kalley.
(1) Lisa made an average (arithmetic mean) return 20 % while Kalley made an average (arithmetic mean) return of 5% (2) Kalley started with two times as much money as Lisa
What is the strategy for solving these type of questions?
Re: Over the last two years who made more investing in stock [#permalink]
19 Oct 2012, 09:02
I am gonna have to choose 'E'. Here's my reason:
1. For Lisa: its Total Returns/Total investment = Rtl/Itl = 0.2 For Kalley: its Total Returns/Total investment = Rtk/Itk = 0.05 Even though it is possible that Lisa might have invested more to get more returns, it is not always true. Kalley might have invested more than what Lisa did and her investments didnt do well. So 'A' is not an answer option.
2. Kalley "started" with twice as investments as Lisa's. We dont know yet what the total investments for these two people are. So 'B' isn't helping either. So I chose answer 'E'. Thanks!
Re: Over the last two years who made more investing in stock [#permalink]
09 Dec 2013, 07:43
vijaygmat wrote:
Over the last two years who made more investing in stock market Lisa or Kalley.
(1) Lisa made an average (arithmetic mean) return 20 % while Kalley made an average (arithmetic mean) return of 5% (2) Kalley started with two times as much money as Lisa
What is the strategy for solving these type of questions?
Obviously both statements alone are not sufficient
Now (1)+(2)
L made 20%, K made 5% K invested more
Can we know who made more money? NO
If K 100 and L 1 then K If K 100 and L 99 then L
Hence E is the correct answer
Changed my mind buddy Gimme Kuddos now!
Cheers! J
Last edited by jlgdr on 29 Dec 2013, 09:12, edited 1 time in total.
Re: Over the last two years who made more investing in stock [#permalink]
12 Dec 2013, 03:38
jlgdr wrote:
vijaygmat wrote:
Over the last two years who made more investing in stock market Lisa or Kalley.
(1) Lisa made an average (arithmetic mean) return 20 % while Kalley made an average (arithmetic mean) return of 5% (2) Kalley started with two times as much money as Lisa
What is the strategy for solving these type of questions?
Obviously both statements alone are not sufficient
Now (1)+(2)
1/5(2x)>1/20(x)
8x>x?
Well 'x' represents the amount of money so it has to be positive. Therefore IMO both statetements should be enough
Please advice because I suspect that there may be something wrong with the line of reasoning Cheers J
I did it just like you and chose C - which is wrong.
Re: Over the last two years who made more investing in stock [#permalink]
12 Dec 2013, 12:39
unceldolan wrote:
jlgdr wrote:
vijaygmat wrote:
Over the last two years who made more investing in stock market Lisa or Kalley.
(1) Lisa made an average (arithmetic mean) return 20 % while Kalley made an average (arithmetic mean) return of 5% (2) Kalley started with two times as much money as Lisa
What is the strategy for solving these type of questions?
Obviously both statements alone are not sufficient
Now (1)+(2)
1/5(2x)>1/20(x)
8x>x?
Well 'x' represents the amount of money so it has to be positive. Therefore IMO both statetements should be enough
Please advice because I suspect that there may be something wrong with the line of reasoning Cheers J
I did it just like you and chose C - which is wrong.
bumping for further explanation.
The 2nd statement says Kalley started with two times as much money as Lisa, the keyword here is started with. Now they may have started with 2x and x amounts respectively but they might invest more money during the course of 2 years in question. So even taking (1) & (2) statements together doesn't answer the question.
Re: Over the last two years who made more investing in stock [#permalink]
24 Jun 2014, 06:59
Quote:
The 2nd statement says Kalley started with two times as much money as Lisa, the keyword here is started with. Now they may have started with 2x and x amounts respectively but they might invest more money during the course of 2 years in question. So even taking (1) & (2) statements together doesn't answer the question.
Correct Ans: E
I am not sure if we are supposed to consider outside information or assumptions such as but they might invest more money during the course of 2 years in question when solving DS questions. With the given constraints and without considering the highlighted assumption, wouldn't the answer be C? Kelly = 2x and made 5% Lisa = x and made 20% Even if Kelly made zero profit and stayed at 2x, in order for Lisa to catch up with Kelly, she has to make at least 100% on her investment. So, Kelly made more money. Answer C.
Re: Over the last two years who made more investing in stock [#permalink]
28 Jun 2014, 11:21
Game wrote:
Quote:
The 2nd statement says Kalley started with two times as much money as Lisa, the keyword here is started with. Now they may have started with 2x and x amounts respectively but they might invest more money during the course of 2 years in question. So even taking (1) & (2) statements together doesn't answer the question.
Correct Ans: E
I am not sure if we are supposed to consider outside information or assumptions such as but they might invest more money during the course of 2 years in question when solving DS questions. With the given constraints and without considering the highlighted assumption, wouldn't the answer be C? Kelly = 2x and made 5% Lisa = x and made 20% Even if Kelly made zero profit and stayed at 2x, in order for Lisa to catch up with Kelly, she has to make at least 100% on her investment. So, Kelly made more money. Answer C.
It is not an assumption but a possible condition. In DS questions we are required to evaluate all the possible conditions. For e.g. even if a statement is true for all integers, we still have to evaluate for fractions. Now coming back to this question, since the question asks Over the last two years who made more investing in stock market Lisa or Kalley. so it is not enough to just consider the investments made at the beginning of the 2 years period. We have to consider the case if investments were made during the 2 years period.
In DS we have to be 100% sure that the statements provide enough information to answer the question. There cannot be an iota of doubt. _________________
Re: Over the last two years who made more investing in stock [#permalink]
13 May 2015, 02:49
vijaygmat wrote:
Over the last two years who made more investing in stock market Lisa or Kalley.
(1) Lisa made an average (arithmetic mean) return 20 % while Kalley made an average (arithmetic mean) return of 5% (2) Kalley started with two times as much money as Lisa
What is the strategy for solving these type of questions?
Tricky one !!!! missed the concept of "started with".
gmatclubot
Re: Over the last two years who made more investing in stock
[#permalink]
13 May 2015, 02:49
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