EduCAT-1

DILR Analysis

D.47-51) Directions for Questions 47 to 51 Answer the following questions based on the information given
below:

Abdul, Bikram and Chetan are three professional traders who trade in shares of a company XYZ Lt(d) Abdul
follows the strategy of buying at the opening of the day at 10 am and selling the whole lot at the close of the day
at 3 pm. Bikram follows the strategy of buying at hourly intervals: 10 am, 11 am, 12 noon, 1 pm and 2 pm, and
selling the whole lot at the close of the day. Further, he buys an equal number of shares in each purchase. Chetan
follows a similar pattern as Bikram but his strategy is somewhat different. Chetan’s total investment amount is
divided equally among his purchases. The profit or loss made by each investor is the difference between the sale
value at the close of the day less the

investment in purchase. The “return” for each investor is defined as the ratio of the profit or loss to the investment
amount expressed as a percentage.

Q.47) On a “boom” day the price of XYZ Lt(d) keeps rising throughout the day and peaks at the close of the day.
Which trader got the minimum return on that day?

a) Bikram

b) Chetan

c) Abdul

d) Abdul or Chetan
Ans: a

Q.48) On a day of fluctuating market prices, the share price of XYZ Lt(d) ends with a gain, i.e., it is higher at the
close of the day compared to the opening value. Which trader got the maximum return on that day

a) Bikram

b) Chetan

c) Abdul

d) Bikram or Chetan

e) cannot be determined

Ans: b
Q.49) Which one of the following statements is always true?

a) Abdul will not be the one with the minimum return

b) Return for Chetan will be higher than that of Bikram
c) Return for Bikram will be higher than that of Chetan
d) none of the above

Ans: d

D.50-51) One day, two other traders, Dane and Emily joined Abdul , Bikram and Chetan for trading in the shares
of XYZ Lt(d) Dane followed a strategy of buying equal numbers of shares at 10 am, 11 am and 12 noon, and
selling the same numbers at 1 pm, 2 pm and 3 pm. Emily, on the other hand, followed the strategy of buying
shares using all her money at 10 am and selling all of them at 12 noon and again buying the shares for all the
money at 1 pm and again selling all of them at the close of the day at 3 pm. At the close of the day the following
was observed:

I. Abdul lost money in the transactions.

II. Both Dane and Emily made profits.
III. There was an increase in share price during the closing hour compared to the price
IV. at 2 pm.
V. Share price at 12 noon was lower than the opening price.

Q.50) Which of the following is necessarily false?

a) Share price was at its lowest at 2 pm

b) Share price was at its lowest at 11 am
c) Share price at 1 pm was higher than the share price at 2 pm
d) none of the above

Ans: d
Q.51) One day, two other traders, Dane and Emily joined Abdul , Bikram and Chetan for trading in the shares of
XYZ Lt(d) Dane followed a strategy of buying equal numbers of shares at 10 am, 11 am and 12 noon, and selling
the same numbers at 1 pm, 2 pm and 3 pm. Emily, on the other hand, followed the strategy of buying shares
using all her money at 10 am and selling all of them at 12 noon and again buying the shares for all the money at
1 pm and again selling all of them at the close of the day at 3 pm. At the close of the day the following was
observed:

Abdul lost money in the transactions.

Both Dane and Emily made profits.

There was an increase in share price during the closing hour compared to the price

at 2 pm.

Share price at 12 noon was lower than the opening price.

Share price was at its highest at

a) 10 am

b) 11 am

c) 12 noon

d) 1 pm

Ans: a
D.52-55) DIRECTIONS for Questions 52 to 55: Answer the questions on the basis of the information given
below. The Dean’s office recently scanned student results into the central computer system. When their character
reading software cannot read something, it leaves that space blank. The scanner output.

reads as follows:

In the grading system, A, B, C, D, and F grades fetch 6, 4, 3, 2, and 0 grade points respectively. The Grade

Point Average (GPA) is the arithmetic mean of the grade points obtained in the five subjects. For example

Nisha‘s GPA is (6 + 2 + 4 + 6 + 0)/5 = 3.6

Some additional facts are also known about the students‘ grades. These are:

Vipul obtained the same grade in Marketing as Aparna obtained in Finance and Strategy.
Fazal obtained the same grade in Strategy as Utkarsh did in Marketing.

Tara received the same grade in exactly three courses.

Q.52) In Operations, Tara could have received the same grade as .

a) Ismet

b) Hari

c) Jagdeep

d) Manab

Ans: d

Q.53) What grade did Preeti obtain in Statistics?

a) A

b) B

c) C

d) D

Ans: A
Q.54) What grade did Utkarsh obtain in Finance?

a) B

b) C

c) D

d) F

Ans: c

Q.55) In Strategy, Gowri ‘s grade point was higher than that obtained by .

a) Fazal

b) Hari

c) Nisha

d) Rahul

Ans: b
D.56-60) Direction for questions 56 to 60 Answer the questions based on the following information.

Ghosh Babu has a manufacturing unit. The following graph gives the cost for various number of units.

Given: Profit = Revenue – Variable cost – Fixed cost. The fixed cost remains constant up to 34 units
after which additional investment is to be done in fixed assets. In any case, production cannot
exceed 50 units.

Q.56) What is the minimum number of units that need to be produced to make sure that there was no loss?

a) 5

b) 10

c) 20

d) Indeterminable

Ans: b
Q.57) How many units should be manufactured such that the profit was at least Rs. 50?

a) 20

b) 34

c) 45

d) 30

Ans: a

Q.58) If at the most 40 units can be manufactured, then what is the number of units that can be manufactured to
maximize profit per unit? (TITA)

a) 34

Ans: a

Q.59) If the production cannot exceed 45 units, then what is the number of units that can maximize profit per
unit? (TITA)

Ans: 34
Q.60) If the fixed cost of production goes up by Rs. 40, then what is the minimum number of units that need to
be manufactured to make sure that there is no loss?

a) 10
b) 19
c) 15
d) 20

Ans: b

D.61-63) Instruction for Questions (61-63):

A series of eight games, numbered G1 to G8, is organized as part of a college fest. In each game, only four
players — A, B, C, D - participate and only one of them emerges as the winner. Five persons - P, Q, R, S, T - from
among the audience took part in a contest wherein each person predicts the winner of each of the eight games in
the series.

A person gets Dollar 300 for the right prediction and loses Dollar 100 for a wrong prediction. The following table
gives the predictions of each of the five persons as to who the winners would be. For example, in game G1, R
predicted player B to win, while both P and T predicted player C to win and both Q and S predicted player D to
win.
At the end of the eight games, it turned out that if any person had predicted that a single player would win each
of the eight games, he would not have gained or lost any amount. At the end of the series of eight games, Q
received the maximum amount of Dollar 1600, while T neither gained nor lost any amount. Had R made one more
correct prediction and Q made one more incorrect prediction, the amounts gained by them at the end of the
games would have interchange(d)

Q.61) The amount gained by P at the end of the eight games is

a) $800
b) $1200
c) $400
d) Cannot be determined

Ans: a

Q.62) How many correct predictions were made by S? (TITA)

Ans: 4

Q.63) In how many of the games was the winner not a player predicted by any of the five persons? (TITA)

Ans: 1
D.64-66) Instruction for Questions (64-66):

Answer the questions on the basis of the information given below.

Pie chart I and Pie chart II show the break up - according to different expenditure heads and savings of the
incomes of Mr. and Mrs. TAPAN respectively. Pie chart III shows the break up - according to the type of savings -
of the total savings of the couple (i.e., the savings of Mr. and Mrs. TAPAN put together).
Q.64) If the ratio of the income of Mr. TAPAN to that of Mrs. TAPAN is 3 :1, the total savings of the couple
invested in PPF as a percentage of Mr. TAPAN's savings are:

a) 50%

b) 65%

c) 72%

d) 78%

Ans: c

Q.65) If for an income of up to Rs.1 lakh, no tax is charged and for any income above Rs.1 lakh, the rate of tax for
males and females is 30% and 20% respectively of the income in excess of Rs.1 lakh, then what is the ratio of the
income of Mr. TAPAN to that of Mrs. TAPAN?

a) 3:4

b) 5:4

c) 4:5

d) None of these
Ans: b

Q.66) If the expenditure on clothes by Mr. TAPAN and that by Mrs. TAPAN are in the ratio 2 :5, then what is the
ratio of the income of Mrs. TAPAN to that of Mr. TAPAN?

a) 5:6

b) 4:5

c) 5:4

d) None of these

Ans: d