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In a certain stock portfolio with 500 shares of different stocks, the

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Math Expert
Joined: 02 Sep 2009
Posts: 44656
In a certain stock portfolio with 500 shares of different stocks, the [#permalink]

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26 Dec 2017, 00:18
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35% (medium)

Question Stats:

86% (01:24) correct 14% (02:42) wrong based on 21 sessions

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In a certain stock portfolio with 500 shares of different stocks, the average (arithmetic mean) value of a share of the stocks is $11. If the value of a share of one of the stocks, of which the portfolio contains 300 shares, decreases by$1 what will be the average value of the stocks in the portfolio?

A. $17.30 B.$10.90
C. $10.83 D.$10.40
E. $9.80 [Reveal] Spoiler: OA _________________ examPAL Representative Joined: 07 Dec 2017 Posts: 309 Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink] Show Tags 26 Dec 2017, 01:45 Bunuel wrote: In a certain stock portfolio with 500 shares of different stocks, the average (arithmetic mean) value of a share of the stocks is$11. If the value of a share of one of the stocks, of which the portfolio contains 300 shares, decreases by $1 what will be the average value of the stocks in the portfolio? A.$17.30
B. $10.90 C.$10.83
D. $10.40 E.$9.80

This is a question involving a ratio (between portfolios) and a percent increase (in stock value).
We'll solve it using the logic of ratios, a Logical approach.

300/500 shares = 3/5 of the portfolio decreased by $1. Then we should expect the average price to decrease by 3/5 of$1 = $0.60 Our new price is 11 - 0.60 =$10.4
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Save up to $250 on examPAL packages (special for GMAT Club members) Intern Joined: 14 Jun 2017 Posts: 23 Location: United States GMAT 1: 710 Q48 V38 GPA: 2.8 Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink] Show Tags 26 Dec 2017, 02:37 Bunuel wrote: In a certain stock portfolio with 500 shares of different stocks, the average (arithmetic mean) value of a share of the stocks is$11. If the value of a share of one of the stocks, of which the portfolio contains 300 shares, decreases by $1 what will be the average value of the stocks in the portfolio? A.$17.30
B. $10.90 C.$10.83
D. $10.40 E.$9.80

We have 500 shares with average of $11. So total portfolio value$$= 11*500= 5,500$$. Value of 300 shares decreased by$1 so new portfolio value=$$5,500- 1*300= 5,200$$.

New Average value of stocks= $$5,200/ 500= 10.40$$. Hence D.
Intern
Joined: 25 Nov 2017
Posts: 4
Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink]

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26 Dec 2017, 02:49
Mean 11 * 500=5500

New mean,

300*10+200*11=5200

5200/500= 10.4

And:d

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Joined: 24 Nov 2016
Posts: 148
Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink]

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27 Dec 2017, 05:43
Bunuel wrote:
In a certain stock portfolio with 500 shares of different stocks, the average (arithmetic mean) value of a share of the stocks is $11. If the value of a share of one of the stocks, of which the portfolio contains 300 shares, decreases by$1 what will be the average value of the stocks in the portfolio?

A. $17.30 B.$10.90
C. $10.83 D.$10.40
E. $9.80 $$Average=\frac{Sum}{Quantity}$$ $$Average.Before=\frac{500*11}{500}=11$$ $$Average.After=\frac{500*11}{500}-\frac{300*1}{500}=11-\frac{3}{5}=10.40$$ (D) is the answer. Board of Directors Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 3405 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink] Show Tags 27 Dec 2017, 11:17 Bunuel wrote: In a certain stock portfolio with 500 shares of different stocks, the average (arithmetic mean) value of a share of the stocks is$11. If the value of a share of one of the stocks, of which the portfolio contains 300 shares, decreases by $1 what will be the average value of the stocks in the portfolio? A.$17.30
B. $10.90 C.$10.83
D. $10.40 E.$9.80

Total value of 500 shares is $5500 Since the value of 300 shares, decreases by$1, net decrease in value is - $300 So, The effective total value of 500 shares is$ 5200

The average value of the stocks in the portfolio is = $$\frac{5200}{500}$$ = $$10.4$$

Answer will be (D) $$10.40$$
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Re: In a certain stock portfolio with 500 shares of different stocks, the   [#permalink] 27 Dec 2017, 11:17
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