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Samantha's investment portfolio consists of three stocks

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Samantha's investment portfolio consists of three stocks [#permalink] New post 24 Nov 2012, 08:15
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A
B
C
D
E

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Question Stats:

92% (02:20) correct 8% (02:11) wrong based on 37 sessions
Samantha's investment portfolio consists of three stocks: an airline, a bank, and a computer company. In the month of February, the price of the airline's stock rose by 10%, that of the bank decreased by 15% and that of the computer company also decreased by 15%, but the overall value of her portfolio increased. If Samantha owns equal amounts of all three stocks, which of the following could be the initial prices of the three stocks in the order airline, bank, and computer company respectively?

A. $55, $85, $40
B. $65, $60, $60
C. $65, $55, $90
D. $85, $25, $20
E. $25, $60, $70
[Reveal] Spoiler: OA
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Re: Samantha's investment portfolio consists of three stocks [#permalink] New post 24 Nov 2012, 11:24
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joylive wrote:
Samantha's investment portfolio consists of three stocks: an airline, a bank, and a computer
company. In the month of February, the price of the airline's stock rose by 10%, that of the bank
decreased by 15% and that of the computer company also decreased by 15%, but the overall value of
her portfolio increased. If Samantha owns equal amounts of all three stocks, which of the following
could be the initial prices of the three stocks in the order airline, bank, and computer company
respectively?

A.$55, $85, $40
B.$65, $60, $60
C.$65, $55, $90
D.$85, $25, $20
E.$25, $60, $70


Since Samantha owns equal amounts of stocks, the 10% increase alone should set off the 15% decrease in each of the other two stocks. i.e The stock which increased should have a substantially higher value than the two stocks which decreased. Between B & D, D is obviously the safer bet and is the right answer.

Answer is D.

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Re: Samantha's investment portfolio consists of three stocks [#permalink] New post 30 May 2013, 01:26
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Expert's post
somalwar wrote:
Can someone please explain how D is the answer?


Perfect solution by MacFauz here: samantha-s-investment-portfolio-consists-of-three-stocks-142973.html#p1147009

Hint: the question asks for which option is the expression (A*1.1+B*0.85+C*0.85)-(A+B+C) positive.
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Re: Samantha's investment portfolio consists of three stocks [#permalink] New post 30 May 2013, 01:10
Can someone please explain how D is the answer?
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Re: Samantha's investment portfolio consists of three stocks   [#permalink] 30 May 2013, 01:10
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