Last visit was: 17 May 2024, 16:34 It is currently 17 May 2024, 16:34

Close

GRE Prep Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GRE score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
avatar
Intern
Intern
Joined: 13 Mar 2018
Posts: 13
Own Kudos [?]: 28 [11]
Given Kudos: 0
Send PM
Verbal Expert
Joined: 18 Apr 2015
Posts: 28756
Own Kudos [?]: 33335 [0]
Given Kudos: 25245
Send PM
User avatar
Retired Moderator
Joined: 07 Jun 2014
Posts: 4810
Own Kudos [?]: 10633 [4]
Given Kudos: 0
GRE 1: Q167 V156
WE:Business Development (Energy and Utilities)
Send PM
User avatar
Manager
Manager
Joined: 01 Nov 2018
Posts: 87
Own Kudos [?]: 140 [0]
Given Kudos: 0
Send PM
Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
1
Expert Reply
Lets use the average formula here.

total profitable trades/total trades= average profitable trades.

we dont yet know the total profitable trades, lets call it p
average profit= .8
total trades = 40

P/40=.8
P = 32
there were 32 profitable trades

once we have this we can use the mixture ratio
we need to find out how many negative trades he needs to get in order for the average
profitable trade to drop to .5
the negative trades will be x
32/(40+x) = .5
32=20+.5x
12=.5x
x=24
Thus, the answer is B
avatar
Supreme Moderator
Joined: 01 Nov 2017
Posts: 371
Own Kudos [?]: 443 [0]
Given Kudos: 0
Send PM
Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
Expert Reply
Shrija Roy wrote:
A stockbroker has made a profit on 80% of his 40 trades this year.

Quantity A
Quantity B
23
The maximum number of consecutive trades that the stockbroker can lose before his profitable trades drop below 50% for the year


A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.


Let us solve for B..
Now, 80% of 40 = \(\frac{80}{100}*40=32\)..
Now there are no wins and these 32 wins become less than 50% of total..
So let the total be X, so \(32\geq\frac{50}{100}*X...X\leq{64}\)..
Thus max losses are 64-40=24..
Thus B>A
Senior Manager
Senior Manager
Joined: 23 Jan 2021
Posts: 294
Own Kudos [?]: 153 [0]
Given Kudos: 81
Concentration: , International Business
Send PM
Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
HappyMathtutor wrote:
Lets use the average formula here.

total profitable trades/total trades= average profitable trades.

we dont yet know the total profitable trades, lets call it p
average profit= .8
total trades = 40

P/40=.8
P = 32
there were 32 profitable trades

once we have this we can use the mixture ratio
we need to find out how many negative trades he needs to get in order for the average
profitable trade to drop to .5
the negative trades will be x
32/(40+x) = .5
32=20+.5x
12=.5x
x=24
Thus, the answer is B

Best explanation sir!
Manager
Manager
Joined: 23 May 2021
Posts: 146
Own Kudos [?]: 45 [1]
Given Kudos: 23
Send PM
Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
1
Bookmarks
Profitable trades = 32 and trades with loss = 8

Check QB , it says number of trades that should be lost to get profit below 50.
If you check QA : 22
Consider 23 losses and add 23 to 40 which is 63 , becomes the total no of trades done till now

Therfore profit become : 32 / 63 which is 50.79 . If you keep increasing the denominator , the profit % will go below 65 .
Hence this can be achieved only when total losses > 23 . Hence QB is greater
User avatar
GRE Prep Club Legend
GRE Prep Club Legend
Joined: 07 Jan 2021
Posts: 4501
Own Kudos [?]: 68 [0]
Given Kudos: 0
Send PM
Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
Hello from the GRE Prep Club BumpBot!

Thanks to another GRE Prep Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Prep Club for GRE Bot
[#permalink]
Moderators:
Moderator
1085 posts
GRE Instructor
218 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne