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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 [#permalink] New post 19 Oct 2012, 05:06
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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?
[Reveal] Spoiler: OA

Last edited by Bunuel on 19 Oct 2012, 06:00, edited 2 times in total.
Cleaned up
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Re: Over the last two years who made more investing in stock [#permalink] New post 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!
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Re: Over the last two years who made more investing in stock [#permalink] New post 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.
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Re: Over the last two years who made more investing in stock [#permalink] New post 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.

bumping for further explanation.
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Re: Over the last two years who made more investing in stock [#permalink] New post 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.

Correct Ans: E
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Re: Over the last two years who made more investing in stock [#permalink] New post 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.
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Re: Over the last two years who made more investing in stock [#permalink] New post 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.
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Re: Over the last two years who made more investing in stock [#permalink] New post 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".
:oops:
Re: Over the last two years who made more investing in stock   [#permalink] 13 May 2015, 02:49
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