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# Over a certain time period, did the number of shares

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Intern
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Over a certain time period, did the number of shares [#permalink]

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10 Oct 2006, 16:40
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This topic is locked. If you want to discuss this question please re-post it in the respective forum.

This might be an easy question for others. (from offcial practice GMAT test CD) Please explain to me why the answer is (C).

Over a certain time period, did the number of shares of stock in Ruth's portfolio increase?

(1) Over the time period, the ratio of the number of shares stock to the total number of shares of stocks and bonds in Ruth's portfolio increased.

(2) Over the time period, the total number of shares of stocks and bonds in Ruth's portfolio increased.
Manager
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Re: Date Sufficiency / RATIO [#permalink]

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10 Oct 2006, 20:30
From 1: the value (stock /stocks+bond) increased. This increase is possible if % increase in just the number of stocks was more than the % increase in (stocks + bonds). Or if the number of shares of stocks remained constant, but the number of bonds decreased, then also the ratio will increase. So statement 1 alone is not sufficient.

From 2: if the number of (stocks + bonds) increased, then for (1) to be true, number of shares of stocks would also need to increase. Statement 2 alone is not sufficient, but with statement (1) we know that number of shares of stock had increased.
Director
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10 Oct 2006, 20:41
Statement 1:
Ratio of share to total can increase because
1. no. of shares increased
2. no. of bonds decreased

INSUFF

Statement 2:
Increase in total number of shares + bonds could be due to the increase in the number of bonds.
INSUFF

Together, SUFF.
Senior Manager
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10 Oct 2006, 20:54
Statement 1:
S/S+B increased.........
which means S should have increased or S is kept const and B is decreased.

So 1 is not sufficient.

Statement 2:
S+B increased.............
Clearly this alone is not sufficient

Combining both, since S+B increased and S/S+B is increased
clearly this happens if S is increased....

So C
_________________
10 Oct 2006, 20:54
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