gocoder wrote:

Two hedge funds reported their performance for the last fiscal year. Hedge fund A earned 5% and hedge fund B earned 8% last year. How many more dollars did hedge fund B generate than did hedge fund A?

(1) Hedge fund B managed $2M more in assets under management than did hedge fund A.

(2)The total amount of money earned by the two hedge funds last year was $1.2M

(A) Statement 1 alone is sufficient but statement 2 alone is not sufficient to answer the question asked.

(B) Statement 2 alone is sufficient but statement 1 alone is not sufficient to answer the question asked.

(C) Both statements 1 and 2 together are sufficient to answer the question but neither statement is sufficient alone.

(D) Each statement alone is sufficient to answer the question.

(E) Statements 1 and 2 are not sufficient to answer the question asked and additional data is needed to answer the statements.

Hi,

we require to know the individual amount in each hedge fund

Let the amount be A and B..

(1) Hedge fund B managed $2M more in assets under management than did hedge fund A.B=A+2

hedge A earned = \(\frac{5}{100} * (A)..\)

hedge B earned = \(\frac{8}{100} * (A+2)\)..

difference = \(\frac{8}{100}* (A+2) - \frac{5}{100} * A = \frac{3A}{100} + \frac{16}{100}\)

we just know the difference, but we require the numeric value ..

Insuff

(2)The total amount of money earned by the two hedge funds last year was $1.2M.this just tells us -

|8/100 *B - 5/100 A| = 1.2..

Insuff

Combined

we have two variables and two equations..

Suff

C

OPtion A: Hedge fund B managed $2M more in assets under management than did hedge fund A.

This is just one area where Hedge fund B managed $2M more in assets than hedge fund A. We dont know that in total hedge fund B managed $2M more than hedge fund A.

No other areas are specified.