Comprehension

One day, two other traders, Dane and Emily, joined Abdul, Bikram, and Chetan for trading in the shares of XYZ Ltd.

Dane’s strategy: Buy equal numbers of shares at 10 am, 11 am, and 12 noon, and sell the same numbers at 1 pm, 2 pm, and 3 pm.

Emily’s strategy: Buy shares using all her money at 10 am and sell all of them at 12 noon; then buy shares again using all her money at 1 pm and sell all of them at the close of the day at 3 pm.

At the close of the day, the following was observed:

  1. Abdul lost money in the transactions.
  2. Both Dane and Emily made profits.
  3. There was an increase in share price during the closing hour compared to the price at 2 pm.
  4. Share price at 12 noon was lower than the opening price.
Question: 1

Share price was at its highest at:

Show Hint

When both traders profit at same sell point, that price is likely peak relative to their buy points.
Updated On: Aug 11, 2025
  • 10 am
  • 11 am
  • 12 noon
  • 1 pm
  • cannot be determined
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is D

Solution and Explanation

From given facts: Emily sells at 1 pm and again at 3 pm, making a profit, meaning 1 pm price was higher than her buy prices at 10 am and 12 noon. Dane sells at 1 pm, 2 pm, 3 pm and makes profit overall, indicating 1 pm is likely the highest point to ensure both make gains in first sale.
Was this answer helpful?
0
0
Question: 2

Which of the following is necessarily false?

Show Hint

Check buying/selling times against profit/loss conditions to eliminate impossible low/high price timings.
Updated On: Aug 11, 2025
  • Share price was at its lowest at 2 pm
  • Share price was at its lowest at 11 am
  • Share price at 1 pm was higher than the share price at 2 pm
  • Share price at 1 pm was higher than the share price at 12 noon
  • none of the above
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is B

Solution and Explanation

Dane buys at 10 am, 11 am, 12 noon and sells later at profit. If 11 am were lowest, it would benefit Dane’s profit, but given Abdul loses money (bought at 10 am, sold at 3 pm), the price must have dropped after 10 am before partial recovery. Data implies 2 pm is more likely the lowest, making option (2) inconsistent with all conditions — hence necessarily false.
Was this answer helpful?
0
0

Top Questions on Logical Reasoning

View More Questions

Questions Asked in CAT exam

View More Questions