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08 Sep 2021, 05:01
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
88% (02:19) correct
12%
(02:52)
wrong
based on 78
sessions
History
Date
Time
Result
Not Attempted Yet
In a certain portfolio, the ratio of the number of domestic stocks to the number of foreign stocks is 7 to 2, and the ratio of the number of mutual funds to the number of foreign stocks is 2 to 3. If the ratio of the number of bonds to the number of domestic stocks is 4 to 3, what is the ratio of the number of mutual funds to the number of bonds?
(A) 28 to 9
(B) 14 to 3
(C) 9 to 28
(D) 7 to 1
(E) 1 to 7
(A) 28 to 9
(B) 14 to 3
(C) 9 to 28
(D) 7 to 1
(E) 1 to 7
DashingNightmare2
Current Student
Joined: 30 May 2021
Last visit: 19 Jun 2022
Posts: 101
Own Kudos:
Given Kudos: 77
Location: India
Concentration: Marketing, Technology
Schools: ISB '23 (A)
GMAT 1: 750 Q50 V41
GPA: 2.96
08 Sep 2021, 05:12
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Bunuel
Domestic : foreign = 7:2
mutual :foreign = 2:3
bond:domestic = 4:3
mutual: bond =?
let foreign = 2*3*4 => domestic = 7*3*4, mutual =2*2*4
if domestic = 7*3*4 => bond =7*4*4
mutual:bond = 2*2*4 : 7*4*4 =1:7
IMO E
08 Sep 2021, 05:52
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Bunuel
Solution:
We are given: The ratio of domestic stocks to foreign stocks is 7 to 2 and the ratio of mutual funds to foreign stocks is 2 to 3.
So we can write:
DS : FS = \(7:2\) and
MF : FS = \(2:3\)
In these 2 ratios, FS (foreign stocks) is common and we can make their ratios common too. The LCM of 2 and 3 is 6. So, we can write:
DS : FS = \(21:6\) and
MF : FS = \(4:6\)
Next, we have the ratio of the number of bonds to the number of domestic stocks is 4 to 3
So we can write:
DS : FS = \(21:6\) and
B : DS = \(4:3\)
In these 2 ratios, DS (domestic stocks) is common and we can make their ratios common too. The LCM of 21 and 3 is 21. So, we can write:
DS : FS = \(21:6\) and
B : DS = \(28:21\)
So ultimately we have the 3 ratios as:
DS : FS = \(21:6\)
MF : FS = \(4:6\) and
B : DS = \(28:21\)
We are asked the ratio of \(MF : B = 4:28 = 1:7\)
Hence the right answer is Option E.
