CAT Exam > CAT Questions > A wealthy investor who wants to invest his mo...
Start Learning for Free
A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:
1. The highest investment has given him the third lowest profit percentage.
2. The least investment is two thousand less than half the highest investment.
3. The second highest investment is twice the second lowest investment.
4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.
5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.
5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.
6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.
7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.
8. The second highest profit percent is 30%.
Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?
- a)Second highest and lowest
- b)Highest and lowest
- c)Second least and second highest
- d)Highest and third least
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A wealthy investor who wants to invest his money is approached by five...
We can see from the table in the solution to the first question of the set that exchange of investment for the highest and lowest investment with the given profit percentage would give the highest profit.
Hence, option 2.
Hence, option 2.
Most Upvoted Answer
A wealthy investor who wants to invest his money is approached by five...
Investment Analysis
To maximize profits, we need to analyze the investments based on the given conditions. The key points derived from the observations are as follows:
Investment Values
- Let the investments be: \(a < b="" />< c="" />< d="" />< e\)="" (from="" least="" to="" />
- Total investment: \(a + b + c + d + e = 100000\).
Profit Percentages
- Highest investment \(e\) yields the third lowest profit percentage.
- The least investment \(a\) is \(2000\) less than half of the highest:
\[ a = \frac{e}{2} - 2000 \]
- Profit on highest investment \(e\) is \(\frac{1}{5}e\) and on least investment \(a\) is \(50\%\) of \(a\).
Profit Distribution
- The profits total \(22950\), meaning the profit contributions are:
- \(P_e = \frac{1}{5}e\)
- \(P_a = 0.5a\)
- The remaining profits will be distributed among \(b, c, d\).
Maximizing Profits
- By exchanging the highest investment \(e\) with the lowest \(a\), we can boost the profit from \(a\) significantly while reducing the lower returns from \(e\).
- \(a\) gains a 50% profit rate, which is higher than the profit returned from \(e\).
Conclusion
Exchanging the investments of the highest \(e\) and the lowest \(a\) maximizes profit because:
- The investor capitalizes on the high return of \(a\) while reducing the impact of \(e\)'s lower profit percentage.
Thus, option **B** (Highest and lowest) is the correct choice for maximizing profits.
To maximize profits, we need to analyze the investments based on the given conditions. The key points derived from the observations are as follows:
Investment Values
- Let the investments be: \(a < b="" />< c="" />< d="" />< e\)="" (from="" least="" to="" />
- Total investment: \(a + b + c + d + e = 100000\).
Profit Percentages
- Highest investment \(e\) yields the third lowest profit percentage.
- The least investment \(a\) is \(2000\) less than half of the highest:
\[ a = \frac{e}{2} - 2000 \]
- Profit on highest investment \(e\) is \(\frac{1}{5}e\) and on least investment \(a\) is \(50\%\) of \(a\).
Profit Distribution
- The profits total \(22950\), meaning the profit contributions are:
- \(P_e = \frac{1}{5}e\)
- \(P_a = 0.5a\)
- The remaining profits will be distributed among \(b, c, d\).
Maximizing Profits
- By exchanging the highest investment \(e\) with the lowest \(a\), we can boost the profit from \(a\) significantly while reducing the lower returns from \(e\).
- \(a\) gains a 50% profit rate, which is higher than the profit returned from \(e\).
Conclusion
Exchanging the investments of the highest \(e\) and the lowest \(a\) maximizes profit because:
- The investor capitalizes on the high return of \(a\) while reducing the impact of \(e\)'s lower profit percentage.
Thus, option **B** (Highest and lowest) is the correct choice for maximizing profits.
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
|
Explore Courses for CAT exam
|
|
Similar CAT Doubts
Top Courses for CATView all
A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer?
Question Description
A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer?.
A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer?.
Solutions for A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT.
Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which two of the following investments should he exchange to maximise his profits the most (if the percentage profits for a particular investment delivered remains the same)?a)Second highest and lowestb)Highest and lowestc)Second least and second highestd)Highest and third leastCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CAT tests.
|
|
Explore Courses for CAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup