CAT Model Paper 6 Questions and Answers with Explanation Part 6

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Questions 28 to 30: Answer these questions after going through the information given below:

TCX, CBB, REL and DLP are four companies whose shares are listed in the Delhi Stock Exchange (DSE) , one of India՚s largest stock exchanges. The following graph gives the details of the price of a share of each company at hourly intervals (starting from 9 am and ending at 3 pm) on April 3,2013.

Q_28-To-30_Ghaph of Value of Share of Each Company

Q: 28. Market capitalization of a company is defined as the total value of all its shares put together. If the market capitalization of all the companies of DSE put together at 3 pm is 76,875 cores and the total number of shares of TCX, CBB, REL and DLP are 3 cores, 2.5 cores, 8 cores and 5 cores respectively, what is the market capitalization of all the companies apart from TCX, CBB, REL and DLP at 3 pm?

(A) 51,375 cores

(B) 48,635 cores

(C) 53,635 cores

(D) 51,555 cores

Ans: D

Solution:

The correct choice is 51,555 cores. Market capitalization of a company = Value of a share x total number of shares at 3 pm,

Market capitalization of TCX ₹ 4215 crores

Market capitalization of CBB ₹ 3325 crores

Market capitalization of REL ₹ 10880 crores

Market capitalization of DLP ₹ 6900 crores

Total market capitalization of the four companies ₹ 25320 crores

Market capitalization of the remaining companies ₹ 51555 crores

Q: 29. For every share bought or sold, a fee of 0.005 % of the value of share is levied on the buyer/seller as brokerage charges. Ahmed bought 125 shares of TCX at 11 am, 150 shares of CBB at 10 am, 80 shares of REL at 9 am and 100 shares of DLP at 12 pm. He sold all his shares of TCX and CBB at 2 pm. He also sold all his shares of REL and DLP at 3 pm. If no other fees apart from brokerage charges are levied, what is the approximate net profit/loss made by Ahmed?

(A) Rc. 5,734

(B) Rc. 11,925

(C) Rc. 6,190

(D) Rc. 7,125

Ans: A

Solution:

The correct choice is Rc. 5,734. TCX:

Ahmed buys 125 shares of TCX at 11 am (buying price of Rc. 1375) and sells them at 2 pm (selling price of ₹ 1400) at a profit of 25 per share (without considering brokerage charges)

Hence, Profit made Rc. 3125

Total brokerage charges paid

CBB:

Ahmed buys 150 shares of CBB at 10 am (buying price of Rc. 1335) and sells them at 2 pm (selling price of Rc. 1355) at a profit of Rc. 20 per share (without considering brokerage charges)

Hence, Profit made ₹ 3000

Total brokerage charges paid

₹ 2017.50

REL:

Ahmed buys 80 shares of REL at 9 am (buying price of Rc. 1300) and sells them at 3 pm (selling price of 1360) at a profit of 60 per share (without considering brokerage charges)

Hence, Profit made = ₹ 4800

Total brokerage charges paid Rc. 1064

DLP:

Ahmed buys 100 shares of CBB at 12 pm (buying price of Rc. 1370) and sells them at 3 pm (selling price of Rc. 1380) at a profit of 10 per share (without considering brokerage charges)

Hence, Profit made ₹ 1000

Total brokerage charges paid

Hence, net profit made = Total profit on sale of all the shares – Total brokerage charges

(17 approx)

Hence option Rc. 5,734

Q: 30. Kunal owns 50 shares of TCX, 40 shares of CBB, 60 shares of REL and 100 shares of DLP. Ketan owns 80 shares of TCX, 50 shares of CBB, 80 shares of REL and 40 shares of DLP. Krish owns 70 shares of TCX, 60 shares of CBB, 90 shares of REL and 20 shares of DLP. Kapil owns 70 shares of TCX, 80 shares of CBB, 60 shares of REL and 30 shares of DLP. At noon, which persons total shares held in the four companies are of the highest value?

(A) Kunal

(B) Ketan

(C) Krish

(D) Kapil

Ans: B

Solution:

The correct choice is Ketan. At noon the value of one share of TCX, CBB, REL and DLP are ₹ 1410, ₹ 1345, ₹ 1325 and ₹ 1370 respectively.

Total value of Kunal՚s shares Rc. 340800

Total value of Ketan՚s shares Rc. 340850

Total value of Krish՚s shares Rc. 326050

Total value of Kapil՚s shares Rc. 326900

Ketan՚s is the highest.

Hence option Ketan

Questions 31 to 33: Answer the questions after reading the passage given below.

As we close in on 10 p. m. , the salad has been cleared from the table and Myshkin is finally, blessedly, silent. After taking espresso orders, Messud begins to talk about her “season of death” and the time it stole from her writing. “We offered on this house,” she says, “and then two days later my father ended up in hospital with a perforated ulcer.” He recovered just in time for her mother՚s diagnosis, and then fell terminally ill.

“Having children can feel like that,” says Wood. “Having children and having dying parents, in your case.”

To illustrate his point, Wood decides to give a reading- not from Messud՚s work but from Elena Ferrante, an Italian novelist he recently wrote about for The New Yorker. “I was amazed at the overlap with some of the material in The Woman Upstairs,” he says, though “you add some of your own pressures and anxieties.”

“Different set of problems,” Messud says. Nora՚s anger is internal; on the outside she՚s still a good girl. “The acculturation of women does not encourage selfishness, assertiveness, single-mindedness.”

I ask Wood if he agrees with Messud՚s friends that she՚s almost too well-behaved.

“Yeah, she՚s very obedient,” he says.

“Obedient, that sounds very bad!” says Messud. “Take that back. That՚s on tape!”

“Yeah, I wouldn՚t use that word What I mean is”

“Would you like cheese?” Messud asks me. “Well, you don՚t have to …”

“I don՚t mean about obeying me,” says Wood. “I mean rules have weight for you.”

To explain, Wood recites two sections from Ferranti՚s The Lost Daughter, passages about what children can do to a woman first to her body, then to her work ( “like an insect՚s poison injected into a vein” ) . It՚s an oddly brutal thing to read to the mother of your children. At the end of the second passage, the narrator abandons her family.

“Nora՚s a softy compared to this,” says Wood. Messud is listening stoically, and I begin to wonder if she might even be a little jealous of this unhinged narrator. Then Wood pivots to discuss this strong counter-impulse they both feel: “To hell with the outside world. To hell with the work. Children are right in front of you. That՚s the work, and the joyous work.”

These aren՚t the usual sentiments you hear from a power couple.

“Power couple!” Messud shouts theatrically, working the espresso machine. “Ha ha ha!” A minute later, she spies Lucian, who՚s sneaked downstairs. Wood volunteers to tuck him in. Left to her own thoughts, Messud begins circling around all the constraints in her life those recent deaths and much more. She speaks in low tones, with few interruptions, for almost half an hour.

I ask if she thinks Wood՚s controversial criticism has affected her career. “I certainly have felt at various moments that the reluctance of a certain world to take me seriously as a writer is not unlike the fact that only one of us can actually work in the house at any given time. That there isn՚t enough air.”

But if a best-selling highbrow author isn՚t part of the Establishment, who is?

She shoots me a wide-eyed look. “I՚m never asked to do anything. I՚m asked to write things, but … but … things like the PEN festival, the New Yorker festival, the Brooklyn festival- I՚m not on anybody՚s mind, that՚s for sure … I՚ve never had a mentor. There՚s never been anyone who՚s pushed for me in my entire life. Never.” She catches herself, pauses. “Maybe nobody has it, is the truth. Maybe everybody is alone.”

Q: 31. Which of the following CANNOT be inferred from the passage?

(A) Wood and Messud are married

(B) Nora is the protagonist of Messud՚s book

(C) Lucian is an animal

(D) Wood is a literary critic

Ans:

Solution:

The correct choice is Lucian is an animal.

‘Wood and Messud are married’ can be inferred from the expression “power couple.”

“Nora is the protagonist of Messud՚s book is true. When Wood is reading from the Italian writer, the passage says - not from Messud՚s work but from Elena Ferrante” and later in comparison that Nora is a softy compared to this …

Lucian is their child, since Wood goes to tuck him in.

‘Wood is a literary critic’ can be inferred from the fact that Wood wrote about Elena Ferrante for New Yorker