GMAT Prep Practice Test Question 4

This topic has expert replies
Junior | Next Rank: 30 Posts
Posts: 17
Joined: Sat Jun 17, 2006 3:41 pm

GMAT Prep Practice Test Question 4

by weipei » Fri May 04, 2007 11:00 pm
Over a certain time period, did the number of shares of stock in Ruth's portfolio increase?

1. Over the time period, the ratio of the number of shares of stock to the total number of shares of stocks and bonds in Ruth's portfolio increased.

2. Over the time period, the total number of shares of stocks and bonds in Ruth's portfolio increased.

Can someone explain this problem? Not sure how to form an equation.

Thanks!

User avatar
Community Manager
Posts: 789
Joined: Sun Jan 28, 2007 3:51 pm
Location: Silicon valley, California
Thanked: 30 times
Followed by:1 members

Re: GMAT Prep Practice Test Question 4

by jayhawk2001 » Sat May 05, 2007 8:05 am
weipei wrote:Over a certain time period, did the number of shares of stock in Ruth's portfolio increase?

1. Over the time period, the ratio of the number of shares of stock to the total number of shares of stocks and bonds in Ruth's portfolio increased.

2. Over the time period, the total number of shares of stocks and bonds in Ruth's portfolio increased.

Can someone explain this problem? Not sure how to form an equation.

Thanks!
Is it C?

1 - insufficient.
s / (s+b) increased. This could be because s increased or b decreased

2 - insufficient.
s+b increased. s increased or b increased

Taking 1 and 2, if s+b increased and s/(s+b) increased, then the only
way is if numerator s increased.

Hence C