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03 Sep 2024, 01:30
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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:
65%
(hard)
Question Stats:
59% (02:20) correct
41%
(02:09)
wrong
based on 193
sessions
History
Date
Time
Result
Not Attempted Yet
In 2004, Jack invested x dollars in Stock A and y dollars in Stock B. In that year, the price of Stock A increased by 10% while price of Stock B increased by 8%. In 2005, Jack continued to hold the two stocks and added m dollars in Stock A and n dollars in Stock B. In that year, the price of Stock A increased by 8% and the price of Stock B increased by 10%. If Jack did not sell any stocks, at the end of the year, which stocks value was greater?
(1) x > y
(2) m > n
(1) x > y
(2) m > n
03 Sep 2024, 03:12
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Stock A: \(\frac{108}{100}[(\frac{110}{100}x)+m]\)
\(\frac{108*110}{100*100}x + \frac{108}{100}m\)
Stock B: \(\frac{110}{100}[(\frac{108}{100}y)+n]\)
\(\frac{108*110}{100*100}y + \frac{110}{100}n\)
(1) x > y
As the first part of the equations are identical for both stocks, one knows that between \(\frac{108*110}{100*100}x\) and \(\frac{108*110}{100*100}y\) that the former is greater. However without knowing more about \(m\) and \(n\) it is impossible to see which of the stocks has the greater value.
INSUFFICIENT
(2) m > n
While this provides info regarding two of the variables, this statement does not provide any info regarding \(x\) and \(y\).
INSUFFICIENT
(1+2)
Stock A: \(\frac{108*110}{100*100}x + \frac{108}{100}m\)
Stock B: \(\frac{108*110}{100*100}y + \frac{110}{100}n\)
From the first statement, one knows that when comparing everything before the addition-sign in the two equations, that Stock A will be bigger than Stock B.
While statement 2 states that \(m > n\), it does not specify by how much.
If one let's \(m = 110\) and \(n = 108\), then the parts of the equations after the addition-sign will be equal and thus Stock A will be greater.
However, if one let's \(m = 100\) and \(n = 99\), then one will have \(108\) for Stock A being added to \(\frac{108*110}{100*100}x\) and for Stock B \(108.9\) being added to \(\frac{108*110}{100*100}y\). While one knows that \(x>y\) one does not know by how much. Without knowing this, cannot say for certain whether Stock A or Stock B will be larger.
INSUFFICIENT
ANSWER E
\(\frac{108*110}{100*100}x + \frac{108}{100}m\)
Stock B: \(\frac{110}{100}[(\frac{108}{100}y)+n]\)
\(\frac{108*110}{100*100}y + \frac{110}{100}n\)
(1) x > y
As the first part of the equations are identical for both stocks, one knows that between \(\frac{108*110}{100*100}x\) and \(\frac{108*110}{100*100}y\) that the former is greater. However without knowing more about \(m\) and \(n\) it is impossible to see which of the stocks has the greater value.
INSUFFICIENT
(2) m > n
While this provides info regarding two of the variables, this statement does not provide any info regarding \(x\) and \(y\).
INSUFFICIENT
(1+2)
Stock A: \(\frac{108*110}{100*100}x + \frac{108}{100}m\)
Stock B: \(\frac{108*110}{100*100}y + \frac{110}{100}n\)
From the first statement, one knows that when comparing everything before the addition-sign in the two equations, that Stock A will be bigger than Stock B.
While statement 2 states that \(m > n\), it does not specify by how much.
If one let's \(m = 110\) and \(n = 108\), then the parts of the equations after the addition-sign will be equal and thus Stock A will be greater.
However, if one let's \(m = 100\) and \(n = 99\), then one will have \(108\) for Stock A being added to \(\frac{108*110}{100*100}x\) and for Stock B \(108.9\) being added to \(\frac{108*110}{100*100}y\). While one knows that \(x>y\) one does not know by how much. Without knowing this, cannot say for certain whether Stock A or Stock B will be larger.
INSUFFICIENT
ANSWER E
03 Sep 2024, 07:14
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I'd say E
Final equation
A - 1.1x * 1.08 + 1.08 m
B - 1.1 * 1.08 y + 1.1 n
x > y implies that 1.1x * 1.08 is greater than 1.1 * 1.08 y but we do not have any info on the other part
m>n does not really imply anything - 1.08 m can still be less than 1.1 n
Hence neither statement works.
Final equation
A - 1.1x * 1.08 + 1.08 m
B - 1.1 * 1.08 y + 1.1 n
x > y implies that 1.1x * 1.08 is greater than 1.1 * 1.08 y but we do not have any info on the other part
m>n does not really imply anything - 1.08 m can still be less than 1.1 n
Hence neither statement works.
