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Average Price of Stock -

by nikhilgmat31 » Thu Sep 10, 2015 11:26 pm
A certain portfolio consisted of five stocks, priced at $20, $35, $40, $45, and
$70, respectively. On a given day, the price of one stock increased by 15% while
the price of another stock decreased by 35% and the prices of the remaining
three remained constant. If the average price of a stock in the portfolio rose
by approximately 2%, which of the following could be the prices of the shares
that remained constant?

(A) $20, $35, and $70
(B) $20, $45, and $70
(C) $20, $35, and $40
(D) $35, $40, and $70
(E) $35, $40, and $45
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by GMATGuruNY » Fri Sep 11, 2015 4:39 am
nikhilgmat31 wrote:A certain portfolio consisted of five stocks, priced at $20, $35, $40, $45, and
$70, respectively. On a given day, the price of one stock increased by 15% while
the price of another stock decreased by 35% and the prices of the remaining
three remained constant. If the average price of a stock in the portfolio rose
by approximately 2%, which of the following could be the prices of the shares
that remained constant?

(A) $20, $35, and $70
(B) $20, $45, and $70
(C) $20, $35, and $40
(D) $35, $40, and $70
(E) $35, $40, and $45
Use reason.
The increase in one price (15%) is LESS THAN HALF the decrease in another price (35%), yet the NET increase is 2%.
Thus, the price that increases must be MUCH HIGHER than the price that decreases.
Only $70 and $20 are sufficiently far apart, implying that the other 3 prices (35,40,45) do not change.

The correct answer is E.
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by nikhilgmat31 » Sun Sep 13, 2015 9:59 pm
Thanks Mitch, Solving such question needs too much time considering each answer choice.

so its better to guess, but I am little at guessing the answers.

Is there any quick way to solve such percentages.
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