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Question:

If Venkat earned a 35% return on average during the year, then which of these statements would necessarily be true?

I . Company A belonged either to Auto or to Steel Industry.

II. Company B did not announce extraordinarily good results.

III. Company A announced extraordinarily good results.IV. Company D did not announce extraordinarily good results.

Explanation:

Venkat earned 35% average return i.e. Rs. 140.

∴ He earned Rs. 40 more than expected.

∴ 40 = x + 0.5y,

where x and y correspond to expected returns on stocks that gave extraordinarily good results.

∴ 0.5y = 40 − x

But x and y can be 20, 10, 30 or 40.

If x = 20, y = 40, which is possible

If x = 10, y = 60, which is not possible

If x = 30, y = 20, which is possible

If x = 40, y = 0, which is not possible

Thus, Company A with x = 20 necessarily announced extraordinarily good results along with company C or D. B did not announce extraordinarily good results.

Hence, option (b).