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 Your Progress
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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:
More Target Test Prep students are earning 100th percentile GMAT scores. Don’t settle for less when the Target Test Prep course gives you everything you need to score high on the GMAT. Start your 5-day free trial today.
In our conversation, Kishore talks about how strategically he used data analytics to identify high impact areas to focus on as well as his early morning study routine (3 AM prep!) that optimized his GMAT preparation.
Join us June 30th for 2 weeks of GMAT questions (just 8 per day) to help with your prep and to compete with your fellow GMAT Clubbers for a chance to win a prize fund of $30,000 for you and your team-mates!
Welcome to the M7 MBA Spotlight Series, featuring MIT Sloan School of Management! This video is part of GMAT Club’s exclusive MBA Spotlight event, where top business schools meet prospective applicants like you.
Join our webinar to master GMAT RC Main Point Questions! Learn effective strategies to decipher passage themes and purposes. Senior Verbal Expert- Sunita Singhvi will equip you with tools to navigate complexities and avoid common traps set by the GMAT.
Looking for your GMAT motivation to break through the score plateau? Pragati improved her score by massive 160 points with strategic guidance and hard-work! Find out how personalized mentorship and a strong mindset can turn GMAT struggles into success.
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Select the dropdowns below and click "Submit" to add this question to your Error log.
Difficulty:
95%
(hard)
Question Stats:
28%
(02:24)
correct 72%
(02:51)
wrong
based on 574
sessions
History
Date
Time
Result
Not Attempted Yet
The graph illustrates changes in the price of the stock Technosoft over a period of time. The red and green lines are called Bollinger Bands, and they include the price range in which stock trades are most likely to occur based on a moving average. The blue line shows the moving average. The box plots show the common and extreme prices for sales of that stock on each trading day.
From the dropdown menus, select the options that create the most accurate statements based on the information provided.
The period of had the greatest price volatility.
If a person bought the stock at the lowest point in the duration under study and sold it at the highest in the same, the person earned a profit of approximately percentage on his investment, excluding the brokerage.
Submit Answer
Start the Timer above, select the dropdowns, and click "Submit" to add this question to your Error log.
Select the dropdowns, and click "Submit" to add this question to your Error log.
I. During the period of Mar 01-Mar 15, the Bollinger Bands have the largest deviation from the average for the longest period of time, indicating that price during this time were varying quite a lot, making them quite volatile. Hence, Mar 01-Mar 15 is the correct answer choice.
II. Over the period, the lowest price was approximately $11 and the highest price was approximately $14. Hence, the maximum possible profit on investment is ($14-$11) / $11 =27% approximately. Hence, 27% is the correct answer choice.
Bollinger Bands include the price range in which stock trades are most likely to occur based on a moving average. The blue line shows the moving average. The box plots show the common and extreme prices for sales of that stock on each trading day.
My question here is why have we taken Bollinger bands to represent the range (which is not exactly the range, but an estimate of it based on moving avearges) and not box plots that gives us the exact values? My answers are varying because of the same. Please help
Bollinger Bands include the price range in which stock trades are most likely to occur based on a moving average. The blue line shows the moving average. The box plots show the common and extreme prices for sales of that stock on each trading day.
My question here is why have we taken Bollinger bands to represent the range (which is not exactly the range, but an estimate of it based on moving avearges) and not box plots that gives us the exact values? My answers are varying because of the same. Please help
Thanks and regards, Nipunh
We have been given that Bollinger bands are the range in which trades are most likely to occur, not the range in which they actually occur. Bolinger bands are tech analysis tools that help us invest - they indicate the price the stock will take based on volatility. They are not created after the stock moves up or down.
Also, the answer to question 2 is ambiguous. We need to approximate the lowest and the highest values in the box chart but the options are too close. There should have been only 1 option in the 20 to 30 range imo.
I. During the period of Mar 01-Mar 15, the Bollinger Bands have the largest deviation from the average for the longest period of time, indicating that price during this time were varying quite a lot, making them quite volatile. Hence, Mar 01-Mar 15 is the correct answer choice.
II. Over the period, the lowest price was approximately $11 and the highest price was approximately $14. Hence, the maximum possible profit on investment is ($14-$11) / $11 =27% approximately. Hence, 27% is the correct answer choice.
So, the y axis here is not shown completely. Looking carefully, each marking on the y axis is on the horizontal gridline. Notice the gap between 12 and 14. 10 would lie much below and the graph has been cut (lowest point) at around 11.
miag
hi, how did you get 11 as the lowest point?
sagniksaha60
I. During the period of Mar 01-Mar 15, the Bollinger Bands have the largest deviation from the average for the longest period of time, indicating that price during this time were varying quite a lot, making them quite volatile. Hence, Mar 01-Mar 15 is the correct answer choice.
II. Over the period, the lowest price was approximately $11 and the highest price was approximately $14. Hence, the maximum possible profit on investment is ($14-$11) / $11 =27% approximately. Hence, 27% is the correct answer choice.