Question

A certain portfolio consisted of 5 stocks, priced at $20, $35, $40, $45, and $70, respectively. On a given day, the price of one stock increased by 15%, while the price of another stock decreased by 35% and the prices of the remaining three remained constant. If the average price of a stock in the portfolio rose by approximately 2%, which of the following could be the prices of the shares that remained constant?

A. 20, 35, 70
B. 20, 45, 70
C. 20, 35, 40
D. 35, 40, 70
E. 35, 40, 45

Answer 1

Answer:E

Explanation:

It is given that there is approximately 2% rise in portfolio.

Also one stock is decrease by 35% and another is increase by 15 %

It is clear that if there is 2 % rise in portfolio then 15 % of suppose stock P must be suppose 35 % of stock Q

thus P must be twice or even greater than twice of Q so P and Q must be

20 and 70 because

35 % of 20= 7

15 % of 70= 10.5

so remaining stocks should be $35 , $40 , $45