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Bunuel
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Compare the orange dots with the blue dots just one hour from blue dots.
Checking orange dots after blue dots which are higher are between
11pm to 12pm - $25 (buy at 125 and sold at 150)
12pm to 1pm - $20 (buy at 110 and sold at 130)
1pm to 2pm -$35 (buy at 125 and sold at 160)
4pm to 5pm -$20 (buy at 135 and sold at 155)

Clearly the highest dollar gain is between 1pm to 2pm
% gain = 35/125 *100 = 28%
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But how do we know that we have to find the greatest possible "percent increase" ? I still did not get why 12pm where 20% gain happened is not an answer??

Bunuel
Official Solution:


Drop-down 1:

• Since the investor sold the shares exactly one hour later on Day 2, we are looking for the largest increase from a given time on Day 1 to one hour later on Day 2. From the graph, the biggest jump occurs between 1pm on Day 1 and 2pm on Day 2, from $125 to $160, giving a gain of $35 per share.

Drop-down 2:

• For the second dropdown, we calculate the percentage gain per share by dividing the dollar gain ($35) by the purchase price at 1pm ($125): 35/125 * 100 = 28%.


Correct answer:

Dropdown 1: "2pm"

Dropdown 2: "28%"
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But how do we know that we have to find the greatest possible "percent increase" ? I still did not get why 12pm where 20% gain happened is not an answer??


Because the question never asks for the greatest percent increase. It asks for the greatest dollar gain per share. Only dollars.

Your 12pm case gives a $20 gain (110 to 130).
But the 1pm to 2pm case gives a $35 gain, which is larger.
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