CAT 1999 DILR Question

Instructions

These questions are based on the price fluctuations of four commodities - arhar, pepper, sugar and gold during February - July 1999 as described in the figures below:

Question 145

Mr. X, a funds manager with an investment company invested 25% of his funds in each of the four commodities at the beginning of the period. He sold the commodities at the end of the period. His investments in the commodities resulted in:

Solution

The profit percentage equals 25%*(2105/1700-1) + 25%*(19250/18500-1) + 25%*(1430/1440-1) + 25%*(3850/4250-1)
This equals 25%*(23.82% + 4.05% -0.69% - 9.41%) = 25%*17.77 = 4.4%

The closest option to this is option (d)

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