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80% (01:44) correct
20%
(02:13)
wrong
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The B10 firms, the top ten brokerage firms in the country of Vickersden, are renowned for their accuracy in predicting market trends. In general, when the ratio of sales to purchases made by these firms falls below 1 to 3 for a particular company, a rise in stock prices of that company is impending. Recently, although stock prices of JRB Railworks have been stable, the B10 firms have bought seven times as many stocks in it as they have sold.
The facts above best support which of the following predictions?
A. The price of JRB Railworks's stocks will start rising soon.
B. Stock bought by the B10 firms in JRB Railworks will soon be sold.
C. The disparity between the purchase and sale of JRB Railworks's stocks will continue to grow.
D. The price of JRB Railworks's stocks will remain stable but fluctuate slightly more.
E. The majority of stock in JRB Railworks will soon be owned by the B10 firms.
The facts above best support which of the following predictions?
A. The price of JRB Railworks's stocks will start rising soon.
B. Stock bought by the B10 firms in JRB Railworks will soon be sold.
C. The disparity between the purchase and sale of JRB Railworks's stocks will continue to grow.
D. The price of JRB Railworks's stocks will remain stable but fluctuate slightly more.
E. The majority of stock in JRB Railworks will soon be owned by the B10 firms.
12 Feb 2026, 00:04
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So the ratio of sales to purchases is 1 to 7 which is well below 1 to 3, this implies that stock price should rise soon.
A. The price of JRB Railworks's stocks will start rising soon.
Correct, as per our understanding from the facts.
B. Stock bought by the B10 firms in JRB Railworks will soon be sold.
Incorrect, we can't say with a certainty that B10 firms will soon sell the stock as they might want to hold it for more time to enjoy price increase.
C. The disparity between the purchase and sale of JRB Railworks's stocks will continue to grow.
Incorrect, it's a big stretch for us to conclude, nothing is given to us for buy and sell disparity.
D. The price of JRB Railworks's stocks will remain stable but fluctuate slightly more.
Incorrect, it's a big stretch for us to conclude, we don't know the price behavior for fluctuations and all.
E. The majority of stock in JRB Railworks will soon be owned by the B10 firms.
Incorrect, it's a big stretch for us to conclude, we don't know whether majority (more than 50%) stocks of JRB rail works will be owned by the B10 firms.
A. The price of JRB Railworks's stocks will start rising soon.
Correct, as per our understanding from the facts.
B. Stock bought by the B10 firms in JRB Railworks will soon be sold.
Incorrect, we can't say with a certainty that B10 firms will soon sell the stock as they might want to hold it for more time to enjoy price increase.
C. The disparity between the purchase and sale of JRB Railworks's stocks will continue to grow.
Incorrect, it's a big stretch for us to conclude, nothing is given to us for buy and sell disparity.
D. The price of JRB Railworks's stocks will remain stable but fluctuate slightly more.
Incorrect, it's a big stretch for us to conclude, we don't know the price behavior for fluctuations and all.
E. The majority of stock in JRB Railworks will soon be owned by the B10 firms.
Incorrect, it's a big stretch for us to conclude, we don't know whether majority (more than 50%) stocks of JRB rail works will be owned by the B10 firms.
12 Feb 2026, 11:15
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ExpertsGlobal5
B10, a brokerage firm, which is among the top ten in the country of Vickersden. They are renowned for their accuracy in predicting market trends.
When the ratio of sales to purchase falls below 1:3. What does this mean ? Brokerage firms sell and purchase shares, so total shares is 4 units. Sales is 1 out 4 and purchase is 3 out of 4. Leaving the math, if the purchase by B10 firm is high, and the sales falls below the (1/4) = 25% threshold, then we can expect a rising market soon.
Recently, JRB rail works stocks which are stable was purchase by B10, and the sales to purchase is 1:7. So, sales is lesser than purchase. And sales is (1/8)=12.5%, which is below the threshold.
So, what prediction does this support?
A. The price of JRB Railworks's stocks will start rising soon.
As per the question logic, since B10 has made heavy purchases, and the sales threshold has fallen below the 25% mark. We can definitely anticipate a price rise soon. Since, the B10 firms market trend prediction accuracy is high. Hence, Correct answer.
B. Stock bought by the B10 firms in JRB Railworks will soon be sold.
This can be a possible outcome of the B10 firm, but not a concrete outcome. Hence, may or may not be true. Thus, Wrong.
C. The disparity between the purchase and sale of JRB Railworks's stocks will continue to grow.
This may happen, till what extent. This is irrelevant, as the threshold mark has been crossed way before. Hence, Wrong.
D. The price of JRB Railworks's stocks will remain stable but fluctuate slightly more.
This is an ambiguous indicator, stable and fluctuating at the same time. We are not concerned with the price of JRB railworks, we are more interested with the market trend rise. Hence, Wrong.
E. The majority of stock in JRB Railworks will soon be owned by the B10 firms.
This usually happens when the price falls, making the purchase profitable for the B10 firms. If that’s the case, then the price of JRB Railworks is falling, and market trend is not rising as mentioned in the passage. Contradicting. Moreover, the number of shares, and individual price points are not known to make predictions. Hence, wrong.
Option A
