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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
The percent return an investor would
[#permalink]
20 Jan 2023, 11:09
20 Jan 2023, 11:09
Expert Reply
00:00
Question Stats:
84% (01:10) correct
15% (01:32) wrong based on 13 sessions
Hide Show timer Statistics
Quantity A |
Quantity B |
The percent return an investor would expect for investing the amounts listed in in the stocks above |
10.5 % |
A) Quantity A is greater.
B) Quantity B is greater.
C) The two quantities are equal.
D) The relationship cannot be determined from the information given
Show: ::
Attachment:
GRE The percent return an investor would (2).jpg [ 13.48 KiB | Viewed 1496 times ]
Attachment:
GRE The percent return an investor would.jpg [ 15.96 KiB | Viewed 1520 times ]
Re: The percent return an investor would
[#permalink]
23 Jan 2023, 23:34
23 Jan 2023, 23:34
Expert Reply
OE
The investor invests $100 total. The Weighted Average formula states that the expected return would be equal to (percent invested in X) (expected return of X) + (percent invested in Y)(expected return of Y) + (percent invested in Z)(expected return of Z). Hence, the expected return would be: (40 %)(10 %) + (40%)(8%) + (20%) (15%) = (4%) + (3-2%) + (3%) = 10.2%.
A=10.2%
B=10.5%
B is greater
The investor invests $100 total. The Weighted Average formula states that the expected return would be equal to (percent invested in X) (expected return of X) + (percent invested in Y)(expected return of Y) + (percent invested in Z)(expected return of Z). Hence, the expected return would be: (40 %)(10 %) + (40%)(8%) + (20%) (15%) = (4%) + (3-2%) + (3%) = 10.2%.
A=10.2%
B=10.5%
B is greater
gmatclubot
Re: The percent return an investor would [#permalink]
23 Jan 2023, 23:34
Moderators:
