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Originally posted by Sajjad1994 on 24 Oct 2023, 09:15.
Last edited by Bunuel on 16 Jun 2026, 02:50, edited 1 time in total.
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McGraw-Hill
The following graph compares the 5-year annualized return for 15 mutual funds with the 3-year annualized return for the same funds. The solid line is the line of best fit.
Attachment:
132.jpg [ 103.91 KiB | Viewed 7831 times ]
The fund for which the ratio of 5-year return to 3-year return was largest had a 3-year return of approximately .
The highest 3-year return for any fund exceeds the 5-year returns of funds.
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Data Insights (DI) Butler 2023-24 [Question #70, Date: Oct-25-2023] [Click here for Details]
The following graph compares the 5-year annualized return for 15 mutual funds with the 3-year annualized return for the same funds. The solid line is the line of best fit.
Attachment:
132.jpg
The fund for which the ratio of 5-year return to 3-year return was largest had a 3-year return of approximately .
The highest 3-year return for any fund exceeds the 5-year returns of funds.
The median 3-year return is approximately ____________.
(A) 5.8% (B) 6.4% (C) 7.5% (D) 8.5% (E) 10.0%
Answer: C
[url=https://gmatclub.com/forum/the-following-graph-compares-the-5-year-annualized-return-for-15-mutua-420500.html]Question #1 based on the same graph is available here
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Can i get an expert reply for the second question please? My interpretation was that we need to pick the funds which fall below the y=x line since for a higher 3 year return we need x>y. I must have made an error in interpreting the question since it clearly isn't among the answer choices.
For 2 - I just checked the fund with the highest 3 year return. The point is approximately at (15.5,15.5). Once I identified this point - I just counted the number of funds with 5 year returns less than 15% - which comes up to 10 funds.
For 2 - I just checked the fund with the highest 3 year return. The point is approximately at (15.5,15.5). Once I identified this point - I just counted the number of funds with 5 year returns less than 15% - which comes up to 10 funds.
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That makes a lot of sense but then shouldn’t the question be framed something like “The highest 3-year return *among all* funds exceeds the 5-year returns of ___ funds.”
For 2 - I just checked the fund with the highest 3 year return. The point is approximately at (15.5,15.5). Once I identified this point - I just counted the number of funds with 5 year returns less than 15% - which comes up to 10 funds.
That makes a lot of sense but then shouldn’t the question be framed something like “The highest 3-year return *among all* funds exceeds the 5-year returns of ___ funds.”
First, we need to find the highest 3-year fund according to the x-axis. Then, we count this 3-year percentage exceeds how many 5-year fund returns according to the y-axis. Hopefully this reply helps.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.