If Venkat earned a 38.75% return on average during the year, then which of these statement(s) would necessarily be true?
I . Company C belonged either to Auto or to Steel Industry.
II. Company D belonged either to Auto or to Steel Industry.
III. Company A announced extraordinarily good results.IV. Company B did not announce extraordinarily good results.
Explanation:
Venkat earned a return of 38.75% = Rs. 155
∴ He earned Rs. 55 more than expected.
∴ 55 = x + 0.5y
where x and y correspond to expected returns on stocks that gave extraordinarily good results.
But x and y can be 20, 10, 30 or 40.
If x = 20, y = 70, which is not possible.
If x = 10, y = 90, which is not possible.
If x = 30, y = 50, which is not possible.
If x = 40, y = 30, which is possible.
Thus company C and company D announced returns that were respectively one and a half and two times the initially expected returns.
∴ Company C belonged to either Auto or Steel Industry and Company A and B did not announce extraordinarily good results.
Statements I and IV are true.
Hence, option (c).
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