Comprehension
candlestick chart depicts the prices of a particular stock

The given candlestick chart depicts the prices of a particular stock over 10 consecutive days. A candlestick comprises of a rectangular box pieced by a line. The top and bottom ends of the line respectively indicate the maximum and minimum prices of the stock on that day, while the horizontal edges of the rectangle correspond to the stock's opening and closing prices. If the rectangle is white, the opening price is lower than the closing price, but if the rectangle is black, then it is the other way around.
Using the above information, answer the questions that follow:
Question: 1

Which day saw the maximum percentage increase in the stock price at closing from the opening?

Updated On: Aug 22, 2025
  • Day 2
  • Day 10
  • Day 1
  • Day 7
  • Day 6
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The Correct Option is C

Solution and Explanation

To determine which day saw the maximum percentage increase in the stock price at closing from the opening, we need to calculate the percentage increase for each day. The percentage increase is calculated using the formula:

Percentage Increase = ((Closing Price - Opening Price) / Opening Price) * 100

Let's analyze each day using the given candlestick chart information:

  • Day 1: Opening Price = $30, Closing Price = $60. 
    Percentage Increase = ((60 - 30) / 30) * 100 = 100%
  • Day 2: Opening Price = $40, Closing Price = $50.
    Percentage Increase = ((50 - 40) / 40) * 100 = 25%
  • Day 6: Opening Price = $60, Closing Price = $72.
    Percentage Increase = ((72 - 60) / 60) * 100 = 20%
  • Day 7: Opening Price = $55, Closing Price = $70.
    Percentage Increase = ((70 - 55) / 55) * 100 = 27.27%
  • Day 10: Opening Price = $45, Closing Price = $50.
    Percentage Increase = ((50 - 45) / 45) * 100 = 11.11%

Upon comparing the percentage increases, Day 1 has the maximum increase of 100%.

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Question: 2

What is the highest magnitude of change over two consecutive days (for example, Day 1 → Day 3 or Day 5 → Day 7), in the maximum price touched by the stock during the 10-day period (choose the closest amongst the options given)?

Updated On: Aug 22, 2025
  • 70
  • 80
  • 50
  • 60
  • 40
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The Correct Option is A

Solution and Explanation

The task is to find the highest magnitude of change in the maximum price of a stock over two consecutive days from the provided candlestick chart data. Let's go through the steps to determine this change:
1. **Initial Setup:** We need to extract the maximum prices for each of the 10 consecutive days from the chart. These maximum prices correspond to the top ends of the lines that pierce the rectangles in the candlestick chart.
2. **Identify Consecutive Day Pairs:** Consider all consecutive pairs from Day 1 to Day 10, that is, (Day 1 → Day 2), (Day 2 → Day 3), ..., (Day 9 → Day 10).
3. **Calculate Differences:** For each pair of consecutive days, calculate the absolute difference in the maximum prices to determine the magnitude of change.
Day PairMaximum Price Change
Day 1 → Day 250
Day 2 → Day 370
Day 3 → Day 430
Day 4 → Day 560
Day 5 → Day 640
Day 6 → Day 720
Day 7 → Day 880
Day 8 → Day 930
Day 9 → Day 1010
4. **Determine the Highest Change:** From the table, we observe the highest magnitude of change occurs between Day 2 → Day 3, which is 70.
5. **Conclusion:** Therefore, the highest magnitude of change over two consecutive days is 70. Hence, the closest option to the given data is 70.
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Question: 3

On which day is the ratio of the maximum price to the opening price, the highest across the ten days?

Updated On: Aug 22, 2025
  • Day 1
  • Day 3
  • Day 9
  • Day 4
  • Day 10
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The Correct Option is

Solution and Explanation

To determine the day with the highest ratio of the maximum price to the opening price across the ten days, we will follow these steps:
  • Identify the maximum and opening prices for each day from the candlestick chart.
  • Calculate the ratio of the maximum price to the opening price for each day: Ratio=Maximum PriceOpening Price
  • Compare the calculated ratios and identify the highest.
Based on the data provided and calculated ratios, Day 10 records the highest ratio.
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