Quantitative Ability (Part 4 of 9)

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

Shabnam is considering three alternatives to invest her surplus cash for a week. She wishes to guarantee maximum returns on her investment. She has three options, each of which cart be utilized fully or partially in conjunction with others.

Option A: Invest in a public sector bank. It promises a return of + 0.10 % .

Option B: Invest in mutual funds of ABC Ltd. A rise in the stock market will result in a return of + 5 % , while a fall will entail a return of-3 % .

Option C: Invest in mutual funds of CBALtd. Arise in the stock market will result in a return of-2.5 % , while a fall will entail a return of + 2 % .

  1. The maximum guaranteed return to Shabnam is
    1. 0.30 %
    2. 0.25 %
    3. 0.10 %
    4. 0.20 %
    5. 0.15 %

    Answer: d

  2. What strategy will maximize the guaranteed return to Shabnam?
    1. 30 % in option A, 32 % in option B and 38 % in option C
    2. 100 % in option A
    3. 36 % in option B and 64 % in option C
    4. 64 % in option B and 36 % in option C
    5. in each of the three options

    Answer: c

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