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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
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In a certain stock portfolio with 500 shares of different stocks, the  [#permalink]

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25 Dec 2017, 23:18
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Difficulty:

25% (medium)

Question Stats:

88% (01:55) correct 13% (02:42) wrong based on 31 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 _________________ examPAL Representative Joined: 07 Dec 2017 Posts: 799 Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink] ### Show Tags 26 Dec 2017, 00:45 1 1 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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Joined: 14 Jun 2017
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Re: In a certain stock portfolio with 500 shares of different stocks, the  [#permalink]

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26 Dec 2017, 01:37
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] ### Show Tags 26 Dec 2017, 01:49 Mean 11 * 500=5500 New mean, 300*10+200*11=5200 5200/500= 10.4 And:d Sent from my ZUK Z2131 using GMAT Club Forum mobile app Manager Joined: 24 Nov 2016 Posts: 152 Re: In a certain stock portfolio with 500 shares of different stocks, the [#permalink] ### Show Tags 27 Dec 2017, 04:43 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

$$Average=\frac{Sum}{Quantity}$$

$$Average.Before=\frac{500*11}{500}=11$$

$$Average.After=\frac{500*11}{500}-\frac{300*1}{500}=11-\frac{3}{5}=10.40$$

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Re: In a certain stock portfolio with 500 shares of different stocks, the  [#permalink]

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27 Dec 2017, 10:17
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 &nbs [#permalink] 27 Dec 2017, 10:17
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