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by vaivish » Fri Aug 01, 2008 6:06 am
attached problem..i want to know why do we need both the statements to ans the Q. I think A is fine as the ratio is increasing numerator has to increase right? please help.
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by sudhir3127 » Fri Aug 01, 2008 6:33 am
My answer is C as well

i think we need both the statements

statemnt 1. Ratio of shares of stock to total number of shars + bonds increased...

this will not lead us anywhere

assume we have 500 shares and 500 bonds

the ratio number of shares/ total = 1:2

but what if the bonds in his portfolio has come come down to 250 from 500

then the ratio is 500/750 which is 2:3 but the number of shares hasnt increased..

that the reason we require statement 2.

hope its clear...
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by vaivish » Tue Aug 12, 2008 6:39 am
hey thanks...its clear now.
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