Instructions

The chart below shows the price data for seven shares - A, B, C, D, E, F, and G as a candlestick plot for a particular day. The vertical axis shows the price of the share in rupees. A share whose closing price (price at the end of the day) is more than its opening price (price at the start of the day) is called a bullish share; otherwise, it is called a bearish share. All bullish and bearish shares are shown in green and red colour respectively.

Question 26

Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). How many shares had an SPV greater than 0.5 on that day?

Name: Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). How many shares had an SPV greater than 0.5 on that day?
Uploaded: 2025-02-27T11:52:55.013335+05:30
Duration: 7 min 5 s
Description: Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). How many shares had an SPV greater than 0.5 on that day?

Correct Answer: 4

Solution

Writing down the values given in the candlestick chart in the form of a table for ease of calculation,

We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day)

Calculating it for the stocks
Stock A: 1200/2000=3/5
Stock B: 600/1850=60/185
Stock C: 600/1000=3/5
Stock D: 900/750=90/75=6/5
Stock E: 300/1200=1/4
Stock F: 800/1700=8/17
Stock G: 900/1450=90/145

We need to check for stocks greater than 0.5 on that day,
Stock A, Stock C, Stock D, Stock G have SPV greater than 0.5 that day.

Hence, the answer is 4.

Get 3 Free CAT Mock Tests with Expert Video Solutions Get 3 Free CAT Mock Tests