It is currently 15 Dec 2017, 15:44

Decision(s) Day!:

CHAT Rooms | Olin (St. Louis) R1 | Tuck R1 | Ross R1 | Fuqua R1

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

practice TA question

Author Message
TAGS:

Hide Tags

Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4563

Kudos [?]: 8985 [3], given: 113

Show Tags

27 Jun 2012, 10:18
3
KUDOS
Expert's post
Hello all. Here, for practice, is are a couple IR Table Analysis questions. Unfortunately, GC doesn't currently have a way to post sortable tables, so I have images of the sorted tables posted as links. Also, I Have done my best within this medium to create the appearance the Multiple Dichotomous Choice question format you will see in GMAT IR TA questions. This is a relatively simple table -- most of the tables on the IR section will be larger.

Enjoy!

Mike

==================================================================================

The table shows 12 popular stocks that are not members of the Dow Jones Industrial Average. For each stock, the table shows the name of the company, the ticker symbol, and the price on January 1st for three consecutive years.

Sorted by company name:

Sorted by price on January 1, 2010:

Sorted by price on January 1, 2011:

Sorted by price on January 1, 2012:

Question #1:

On the basis of the information in the table, decide whether the following statements are true or false.

___true ____false____1a) For two of the three years shown, the three most expensive stocks are the same

___true ____false____1b) At least two stocks increase by at least 30% for two years in a row

___true ____false____1c) No stock that dropped in value from 1/1/10 to 1/1/11 increase by 30% in the following year

Question #2:

For the following trades on given dates, tell whether the net result would be to have more or less money by 1/1/12. In each case, assume a large number of shares is involved in the trade, so that the difference between the cash from the sale and the price of a whole number of new shares is negligible. The cash amount of the stocks you sell will equal, almost exactly, the cash amount of the stocks you buy, but the number of shares bought & sold may or may not be the same.

__more money by 1/1/12____less money by 1/1/12____2a) On January 1, 2010, sell shares of GOOG, and use the money to buy shares of AAPL

__more money by 1/1/12____less money by 1/1/12____2b) On January 1, 2010, sell shares of OPEN, and use the money to buy shares of HLF

__more money by 1/1/12____less money by 1/1/12____2c) On January 1, 2010, sell shares of AAPL, and use the money to buy shares of ACAT

[Reveal] Spoiler:
1a) true; 1b) true; 1c) false
2a) more money; 2b) less money; 2c more money

_________________

Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)

Kudos [?]: 8985 [3], given: 113

 Magoosh Discount Codes Kaplan GMAT Prep Discount Codes Manhattan GMAT Discount Codes
Director
Joined: 28 Jul 2011
Posts: 516

Kudos [?]: 312 [1], given: 16

Location: United States
GPA: 3.86
WE: Accounting (Commercial Banking)

Show Tags

29 Jun 2012, 06:09
1
KUDOS
mikemcgarry wrote:
Hello all. Here, for practice, is are a couple IR Table Analysis questions. Unfortunately, GC doesn't currently have a way to post sortable tables, so I have images of the sorted tables posted as links. Also, I Have done my best within this medium to create the appearance the Multiple Dichotomous Choice question format you will see in GMAT IR TA questions. This is a relatively simple table -- most of the tables on the IR section will be larger.

Enjoy!

Mike

==================================================================================

The table shows 12 popular stocks that are not members of the Dow Jones Industrial Average. For each stock, the table shows the name of the company, the ticker symbol, and the price on January 1st for three consecutive years.

Sorted by company name:
http://magoosh.com/gmat/files/2012/06/g ... ompany.jpg

Sorted by price on January 1, 2010:
http://magoosh.com/gmat/files/2012/06/g ... y-2010.jpg

Sorted by price on January 1, 2011:
http://magoosh.com/gmat/files/2012/06/g ... y-2011.jpg

Sorted by price on January 1, 2012:
http://magoosh.com/gmat/files/2012/06/g ... y-2012.jpg

Question #1:

On the basis of the information in the table, decide whether the following statements are true or false.

___true ____false____1a) For two of the three years shown, the three most expensive stocks are the same

___true ____false____1b) At least two stocks increase by at least 30% for two years in a row

___true ____false____1c) No stock that dropped in value from 1/1/10 to 1/1/11 increase by 30% in the following year

Question #2:

For the following trades on given dates, tell whether the net result would be to have more or less money by 1/1/12. In each case, assume a large number of shares is involved in the trade, so that the difference between the cash from the sale and the price of a whole number of new shares is negligible. The cash amount of the stocks you sell will equal, almost exactly, the cash amount of the stocks you buy, but the number of shares bought & sold may or may not be the same.

__more money by 1/1/12____less money by 1/1/12____2a) On January 1, 2010, sell shares of GOOG, and use the money to buy shares of AAPL

__more money by 1/1/12____less money by 1/1/12____2b) On January 1, 2010, sell shares of OPEN, and use the money to buy shares of HLF

__more money by 1/1/12____less money by 1/1/12____2c) On January 1, 2010, sell shares of AAPL, and use the money to buy shares of ACAT

[Reveal] Spoiler:
1a) true; 1b) true; 1c) false
2a) more money; 2b) less money; 2c more money

Hi mikemcgarry,

First of all thanks for the hard efforts taken to post such a complicated question. ok going back to the question

I got 1st one correct, but shockingly for 2nd one i got exactly the opposite answers to OA i.e 1. Less 2. More 3. More, can you please explain the 2nd one??

Regards
Srinath
_________________

Kudos [?]: 312 [1], given: 16

Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4563

Kudos [?]: 8985 [2], given: 113

Show Tags

29 Jun 2012, 13:00
2
KUDOS
Expert's post
kotela wrote:
Hi mikemcgarry,

I got 1st one correct, but shockingly for 2nd one i got exactly the opposite answers to OA i.e 1. Less 2. More 3. More, can you please explain the 2nd one??

Regards
Srinath

Thank you for your compliments. I'll explain just (2a), and that might be enough to understand the others. If you got the exact opposite answer for all three, that suggests you were misinterpreting the questions consistently.

Suppose on 1/1/2010, I owe a ton of share of GOOG. Say, I have a million dollars of GOOG, or a hundred million shares --- for the calculation, it doesn't matter. In the real stock market, of course I would diversify, but in this pretend problem, I have only two choices:

a) hold the GOOG for two years

b) sell the GOOG on 1/1/2010, buy AAPL with the money, and hold that for two years.

I want to know how the second option compares to the first.

If I simply hold GOOG for two years, the share price goes from 626.95 to 652.94 --- that's less than a 10% increase --- let's estimate it's about a 5% increase. That would mean, my million dollars of GOOG stock would increase 5% in that period.

If I dump the GOOG, and invest the money in AAPL, that means I buy the AAPL on 1/1/2010 at \$213.43 and in two years, it's at \$409.40. That's almost double. If I had performed this trade, I would have made almost 100% on my money in two years.

So, the question is --- if I do this trade, if I go with (b) does this leave me with more or less money than if I had stayed put with (a)?

Clearly, 100% is larger than 5%, so if I had gone with option (b) I would have made more money.

Mike
_________________

Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)

Kudos [?]: 8985 [2], given: 113

Director
Joined: 28 Jul 2011
Posts: 516

Kudos [?]: 312 [1], given: 16

Location: United States
GPA: 3.86
WE: Accounting (Commercial Banking)

Show Tags

02 Jul 2012, 06:44
1
KUDOS
mikemcgarry wrote:
kotela wrote:
Hi mikemcgarry,

I got 1st one correct, but shockingly for 2nd one i got exactly the opposite answers to OA i.e 1. Less 2. More 3. More, can you please explain the 2nd one??

Regards
Srinath

Thank you for your compliments. I'll explain just (2a), and that might be enough to understand the others. If you got the exact opposite answer for all three, that suggests you were misinterpreting the questions consistently.

Suppose on 1/1/2010, I owe a ton of share of GOOG. Say, I have a million dollars of GOOG, or a hundred million shares --- for the calculation, it doesn't matter. In the real stock market, of course I would diversify, but in this pretend problem, I have only two choices:

a) hold the GOOG for two years

b) sell the GOOG on 1/1/2010, buy AAPL with the money, and hold that for two years.

I want to know how the second option compares to the first.

If I simply hold GOOG for two years, the share price goes from 626.95 to 652.94 --- that's less than a 10% increase --- let's estimate it's about a 5% increase. That would mean, my million dollars of GOOG stock would increase 5% in that period.

If I dump the GOOG, and invest the money in AAPL, that means I buy the AAPL on 1/1/2010 at \$213.43 and in two years, it's at \$409.40. That's almost double. If I had performed this trade, I would have made almost 100% on my money in two years.

So, the question is --- if I do this trade, if I go with (b) does this leave me with more or less money than if I had stayed put with (a)?

Clearly, 100% is larger than 5%, so if I had gone with option (b) I would have made more money.

Mike

Hi mikemcgarry,

Thanks a lot appreciate your efforts for an awesome explanation.

+1 Kudos for you
_________________

Kudos [?]: 312 [1], given: 16

Senior Manager
Joined: 14 May 2011
Posts: 276

Kudos [?]: 160 [0], given: 134

Location: Costa Rica
GMAT 1: 710 Q42 V45
GMAT 2: 740 Q48 V42
GPA: 3.3
WE: Research (Consulting)

Show Tags

08 Jul 2012, 06:52
hi all, apart from the very useful pdf on IR questions Magoosh released recently, can anybody suggest what other test prep material you're using for the IR?

OG13/new GMAC apart, I heard that Manhattan's new test series has an IR section, wondering if I should purchase. Any thing else worth while?
_________________

Work experience (as of June 2012)
2.5 yrs (Currently employed) - Mckinsey & Co. (US Healthcare Analyst)
2 yrs - Advertising industry (client servicing)

Kudos [?]: 160 [0], given: 134

Re: practice TA question   [#permalink] 08 Jul 2012, 06:52
Display posts from previous: Sort by

practice TA question

Moderators: chetan2u, Bunuel

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.