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Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
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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
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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
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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!
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Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
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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
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Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
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Re: A stockbroker has made a profit on 80% of his 40 trades this [#permalink]
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