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ratio increase

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by smallsorrow » Mon Nov 17, 2008 10:24 am
Over a certain time period, did the number of shares of stock in Ruths portfolio increase?

1) Over the period, the ratio of shares to the total number of shares and bonds increased
2) Over the period, the total number of shares and bonds in Ruths prortfolio increased

2) is obvisously not sufficient - but 1) should be: an increase in the ratio does indicate an increase in the numerator... doesnt it??

OA is C
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Source: — Data Sufficiency |

by mals24 » Mon Nov 17, 2008 12:51 pm
A ratio could increase if:

1. the numerator increases and denominator remains constant
2. the denominator decreases and the numerator remains constant
3. the num increases and the den decreases simultaneously.
4. both num and den increase

St 1 just says the ratio increased is s/(s+b) increased. We don't know which of the above mentioned situations took place. INSUFF

St 2 is quite clear to you.

Combining the 2 statements.

We know den increased. So even the num has to increase for the overall ratio to increase. (4th situation).

Hence the answer is C.
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