DI Test 55
Directions for Questions from 1 to 4:
Venkat, 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. Venkat 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 arc defined as the change in the value of the 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 half times that of the initially expected returns. For the remaining two
companies, which did not announce extraordinarily good results, the returns realized during the year were the same as initially expected
1. 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?
I. Venkat earned not more than 36.25% return on average.
II. Venkat earned not less than 33.75% return on average.
III. If Venkat earned 33.75% return on average, Company A announced extraordinarily good results.
IV. If Venkat earned 33.75% return on average, Company B belonged either to Auto or to Steel Industry.
I and II only
II and IV only
II and III only
III and IV only
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