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Re: 2001, the closing price of stock A and stock B are the same. [#permalink]
4gmatmumbai wrote:
Hi,

Stmt 1:

Let the closing stock price of both A and B (in 2001) be Rs 100.

Case 1:

Let the closing stock price of B at the end of 2002 be Rs 200. Then, A is Rs 216.

Price increase of stock A = Rs 116
Price increase of stock B = Rs 100

% by which price increase in stock A is greater than that in stock B =
((116 - 100) / 100) * 100 = 16%

Case 2:

Let the closing stock price of B at the end of 2002 be Rs 300. Then, A is Rs 324.

Price increase of stock A = Rs 224
Price increase of stock B = Rs 200

% by which price increase in stock A is greater than that in stock B =
((224 - 200) / 200) * 100 = 12%

Hence, statement 1 is not sufficient. Hope this clarifies.

I guess the reason why stmt 2 is not sufficient is fairly straightforward.

Thanks.


I think the try and error will consume a lot of time. I prefer the solution of Brunel :)
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Re: 2001, the closing price of stock A and stock B are the same. [#permalink]
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Video solution from Quant Reasoning starts at 15:40 here:
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Re: 2001, the closing price of stock A and stock B are the same. [#permalink]
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A simply way to solve this question is by assuming values

Statement 1 is not sufficient because we have no information about B and we can get more than 1 answer

Statement 2 is not sufficient because again, we we have no information about B.

When we combine both the statements we get

Assume the starting value of both the stocks is 100.
Let the increase in stock B be x

Now,
1.15(100)=1.08(100+x)
115=108+1.08x
7=1.08x
x=7/1.08
x=6.48

Hope this was helpful

You can follow similar approach in such questions

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Re: 2001, the closing price of stock A and stock B are the same. [#permalink]

    stmt 1
    A B
    2001 X X
    2002 108 100

    Price increase for A = (108-X)/X
    Price increase for B = (100-X)/X

    Question asks : By what percent was the price increase of A greater than the price increase of B
    (Price increase for A - Price increase for B)/Price increase for B

    Not Sufficient (X is not known)

    stmt 2:
    Price increase for A = 15%, We dont know anything abt B --> Not Sufficient

    Combining 1 and 2

    15=(108-X)/X
    108=16X

    Stmt 1 + stmt 2 together sufficient








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Re: 2001, the closing price of stock A and stock B are the same. [#permalink]
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Re: 2001, the closing price of stock A and stock B are the same. [#permalink]
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