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# Over a period of 2 years from 2010 to 2012, Stock A and Stoc

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Intern
Joined: 17 Jan 2013
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Over a period of 2 years from 2010 to 2012, Stock A and Stoc [#permalink]

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10 Apr 2013, 00:35
Over a period of 2 years from 2010 to 2012, Stock A and Stock B have changed in value. In 2010, a share of Stock A and a share of Stock B were, together, worth a total of N dollars. Also, in 2010, the ratio of the price of Stock A to Stock B was 0.8. A and B represent the percent change in value of stocks A and B, respectively from 2012 to 2012. The percent change in a quantity X is calculated using the formula:

100∗(Xnew−Xold)/Xold

In the table, select the expression that represents the value of Stock B in 2010 and the expression that represents the ratio of Stock A to Stock B in 2012. Make only two selections, one in each column.

Value of Stock B in 2010 -- Ratio in 2012
Options:
N/0.8
N/1.2
N/1.8
A/0.8+B/1.25N
0.8((1+A)/(1+B))
1.25((1+A)/(1+B))

I m not getting as to how the ratio in 2012 was comupted? I knw the answer has to be from the last three answers but which one to choose? I just just guessed as you all can see. Either I have gone insane studying for GMAT that I feel some information is missing in the question or I need to go study more till i go insane !

THANK YOU
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Re: Over a period of 2 years from 2010 to 2012, Stock A and Stoc [#permalink]

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10 Apr 2013, 12:28
1
KUDOS
swarman wrote:
I m not getting as to how the ratio in 2012 was comupted? I knw the answer has to be from the last three answers but which one to choose? I just just guessed as you all can see. Either I have gone insane studying for GMAT that I feel some information is missing in the question or I need to go study more till i go insane !

THANK YOU

Hi Swarman,

Kindly search before opening new threads. As far as the explanation is concerned, go through my post at the below mentioned link n you will get the answer.
over-a-period-of-2-years-145311.html
over-a-period-of-2-years-145311.html

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Re: Over a period of 2 years from 2010 to 2012, Stock A and Stoc   [#permalink] 10 Apr 2013, 12:28
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