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17 Jul 2010, 11:23
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
66% (01:31) correct
34%
(01:24)
wrong
based on 1325
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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 number of shares of 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.
DS.JPG [ 51.3 KiB | Viewed 6301 times ]
(1) Over the time period, the ratio of number of shares of 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.
Attachment:
DS.JPG [ 51.3 KiB | Viewed 6301 times ]
17 Jul 2010, 11:59
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Over a certain time period, did the number of shares of stock in Ruth's portfolio increase?
Let the number of stocks be \(s\) and the number of bonds be \(b\). The question is: Did \(s\) increase?
(1) Over the time period, the ratio of number of shares of stock to the total number of shares of stocks and bonds in Ruth's portfolio increased.
This implies that \(\frac{s}{s+b}\) increased. This information is not sufficient, as it is possible that \(s\) increased while \(b\) remained the same, or \(s\) remained the same while \(b\) decreased.
(2) Over the time period, the total number of shares of stocks and bonds in Ruth's portfolio increased.
This implies that \(s+b\) increased. This information is clearly insufficient on its own.
(1)+(2): \(\frac{s}{s+b}\) increased, and \(s+b\) (the denominator) also increased, so it must be true that \(s\) (the numerator) increased as well. Therefore, this is sufficient.
Answer: C.
Hope it's clear.
Let the number of stocks be \(s\) and the number of bonds be \(b\). The question is: Did \(s\) increase?
(1) Over the time period, the ratio of number of shares of stock to the total number of shares of stocks and bonds in Ruth's portfolio increased.
This implies that \(\frac{s}{s+b}\) increased. This information is not sufficient, as it is possible that \(s\) increased while \(b\) remained the same, or \(s\) remained the same while \(b\) decreased.
(2) Over the time period, the total number of shares of stocks and bonds in Ruth's portfolio increased.
This implies that \(s+b\) increased. This information is clearly insufficient on its own.
(1)+(2): \(\frac{s}{s+b}\) increased, and \(s+b\) (the denominator) also increased, so it must be true that \(s\) (the numerator) increased as well. Therefore, this is sufficient.
Answer: C.
Hope it's clear.
08 Feb 2017, 20:36
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1) The ratio of shares:total could increase by adding more shares or by reducing the number of bonds. Insufficient.
2) The total number could increase by adding shares, adding bonds, or both. Insufficient.
Combined, we know the total number of shares and bonds went up, and we know the ratio of shares:total went up. The only way both statements can be true is if the number of shares increased. Thus, we need both statements.
Hence C.
2) The total number could increase by adding shares, adding bonds, or both. Insufficient.
Combined, we know the total number of shares and bonds went up, and we know the ratio of shares:total went up. The only way both statements can be true is if the number of shares increased. Thus, we need both statements.
Hence C.
