Five horses, Red, White, Grey, Black and Spotted participated in a race. As per the rules of the race, the persons betting on the winning horse get four times the bet amount and those betting on the horse that came in second get thrice the bet amount. Moreover, the bet amount is returned to those betting on the horse that came in third, and the rest lose the bet amount. Raju bets Rs. 3000, Rs. 2000 and Rs. 1000 on Red, White and Black horses respectively and ends up with no profit and no loss.
Suppose, in addition, it is known that Grey came in fourth. Then which of the following cannot be true?
There are total 3 cases which satisfies the condition "no profit and no loss."
Case 1: White comes 2nd.(remaining two horses(red/black) come 4th/5th)
Profit from white horse = Final Amount - Initial Amount = 2000*3 - 2000 = 4000
Loss from Red and Black horse = 3000+1000 = 4000
Net profit = 4000-4000 = 0
Case 2: Black, Red come second, third respectively.(remaining one horse(white) comes 4th/5th)
Profit from Black = 1000*3-1000 = 2000
Profit from Red = 3000 - 3000 = 0
Loss from white = 2000
Net profit = 2000-2000 = 0
Case 3: black, white come first, third respectively.(remaining one horse(red) comes 4th/5th)
Profit from Black = 1000*4-1000 = 3000
Profit from White = 2000 - 2000 = 0
Loss from Red = 3000
Net Profit = 3000-3000=0
And it is mentioned that grey case 4th. ==> case 1 is wrong.(because, in that case red, black should come 4th,5th)
So option C cannot be true.
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