Over the last two years who made more investing in stock

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Over the last two years who made more investing in stock [#permalink]

19 Oct 2012, 06:06

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Question Stats:

35% (01:58) correct

64% (01:13) wrong

based on 14 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?

[Reveal] Spoiler: OA

Last edited by Bunuel on 19 Oct 2012, 07:00, edited 2 times in total.

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Re: Over the last two years who made more investing in stock [#permalink]

19 Oct 2012, 10:02

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] 19 Oct 2012, 10:02

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Over the last two years who made more investing in stock

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Over the last two years who made more investing in stock

Over the last two years who made more investing in stock

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