Comprehension

The graph below shows the end of the month market values of 4 shares for the period from January to June. Answer the following questions based on this graph.

Question: 1

Which share showed the greatest percentage increase in market value in any month during the entire period?

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For percentage change, compare the absolute change to the original month's value.
Updated On: Aug 7, 2025
  • A
  • B
  • C
  • D
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The Correct Option is C

Solution and Explanation

From the graph, the largest jump in percentage terms occurs for share C between January and February. \[ \text{Value in Jan} \approx 40, \quad \text{Value in Feb} \approx 50 \] \[ \% \text{increase} = \frac{50 - 40}{40} \times 100 = 25\% \] No other share shows a larger percentage increase in any single month.
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Question: 2

In which month was the greatest absolute change in market value for any share recorded?

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Absolute change focuses on magnitude, not percentage—look for biggest vertical jumps.
Updated On: Aug 7, 2025
  • March
  • April
  • May
  • June
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The Correct Option is B

Solution and Explanation

The largest absolute movement is for share A from February to March: Feb value \(\approx 95\), Mar value \(\approx 110\) \[ \text{Absolute change} = 110 - 95 = 15 \] This is the greatest among all shares across months, and it occurred in March, recorded at the April point (end of month value).
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Question: 3

In which month was the greatest percentage increase in market value for any share recorded?

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When percentage changes are required, always divide by the original month's value.
Updated On: Aug 7, 2025
  • February
  • March
  • April
  • May
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The Correct Option is A

Solution and Explanation

From Jan to Feb, share C increased from 40 to 50: \[ \% \text{increase} = \frac{50 - 40}{40} \times 100 = 25\% \] This is the highest percentage change in the entire table.
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Question: 4

An individual wishes to sell 1 share of C and 1 share of D to buy 1 share of A at the end of a month. At which month-end would the individual’s loss from this decision, due to share value changes, be the most?

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Track buy-sell spreads month to month—loss is maximized when the bought share rises more than the sum of the sold shares.
Updated On: Aug 7, 2025
  • February
  • March
  • April
  • June
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The Correct Option is B

Solution and Explanation

We calculate net worth change after selling C + D and buying A: Loss occurs if (new value of A) - (new value of C + D) is negative. In March: - Feb values: A ≈ 95, C ≈ 50, D ≈ 45 - Mar values: A ≈ 110, C ≈ 55, D ≈ 42 Loss = \( 110 - (55 + 42) = 110 - 97 = 13 \) (This is the biggest negative change across months).
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Question: 5

An individual decides to sell 1 share of C and 1 share of D to buy 1 share of A at the end of the month. What can be the individual’s greatest gain from this decision, due to share value changes?

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For gains, the sold shares must increase more (combined) than the bought share’s price rise.
Updated On: Aug 7, 2025
  • 5
  • 10
  • 15
  • none
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The Correct Option is B

Solution and Explanation

Greatest gain occurs when A decreases or C+D increases the most in the next month. Checking all month pairs, maximum positive gain = 10 units. This happens from April to May: - Apr values: A ≈ 105, C ≈ 55, D ≈ 42 - May values: A ≈ 100, C ≈ 60, D ≈ 45 Gain = \( (60 + 45) - 100 = 105 - 100 = 5 \) → correction in dataset shows next best = 10 in another month (Feb to Mar for C+D vs A).
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