Data Interpretation Logical Reasoning (Part 1 of 7)

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Directions: Answer these Questions on the basis of the information given below:

Ram, a stockbroker, invested a part of his money in the stock of four companies-A, B, C and D. Each of these companies belonged to different industries, viz. Cement, Information Technology (IT), Auto, and Steel, in no particular order. At the-time of investment, the price of each stock was Rs. 100. Ram purchased only one stock of each of these companies. He was expecting returns of 20%, 10%, 30% and 40% from the stock of companies A, B, C and D, respectively. Returns are defined as the change in the value ofthe stock after one year, expressed as a percentage of the initial value. During the year, two of these companies announced extraordinarily good results. One of these two companies belonged to the Cement or the IT industry, while the other one belonged to either the Steel or the Auto industry. As a result, the returns on the stocks of these two companies were higher than the initially expected returns. For the company belonging to the Cement or the IT industry with extraordinarily good results, the returns were twice that of the initially expected returns. For the company belonging to the Steel or the Auto industry, the returns on announcement of extraordinarily good results were only one and a halftimes that of the initially expected returns. For the remaining two companies.

Which do not announce extraordinarily good results, the returns realized during the year were the same as initially expected.

  1. If Ram earned a 35% return on average during the year, then which of these statements would necessarily be true?

    1. Company A belonged either to Auto or to Steel Industry.

    2. Company B did not announce extraordinarily good results.

    3. Company A announced extraordinarily good results.

    4. Company D did not announce extraordinarily good results.

    Then which is the best choice?

    1. I and II only

    2. II and III only

    3. III and IV only

    4. II and IV only

  2. If Ram earned a 38.75% return on average during the year, then which of these statement (s) would necessarily be true?

    1. Company C belonged either to Auto or to Steel Industry.

    2. Company D belonged either to Auto or to Steel Industry.

    3. Company A announced extraordinarily good results.

    4. Company B did not announce extraordinarily good results.

    Then which is the best choice?

    1. I and II only

    2. II and III only

    3. III and IV only

    4. II and IV only

  3. What is the minimum average return Ram would have earned during the year?

    1. 30%

    2. 31 ¼%

    3. 32 ½%

    4. Cannot be determined

  4. If Company C belonged to the Cement or the IT industry and did announce extraordinarily good results, then which of these statement (s) would necessarily be true?

    1. Ram earned not more than 36.25% return on average.

    2. Ram earned not less than 33.75% return on average.

    3. If Ram earned 33.75% return on average, Company A announced extraordinarily good results.

    4. If Ram earned 33.75% return on average, Company B belonged either to Auto or to Steel Industry.

    Then which is the best choice?

    1. I and II only

    2. II and IV only

    3. II and III only

    4. III and IV only

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