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Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation PDF Download

The chart below shows the price data for seven shares - A, B, C, D, E, F, and G as a candlestick plot for a particular day. The vertical axis shows the price of the share in rupees. A share whose closing price (price at the end of the day) is more than its opening price (price at the start of the day) is called a bullish share; otherwise, it is called a bearish share. All bullish and bearish shares are shown in green and red colour respectively.

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation

Q1: Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). Which among the shares A, C, D and F had the highest SPV on that day?
(a) F
(b) A
(c) D
(d) C

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT PreparationView Answer  Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation

Ans: (d)
Writing down the values given in the candlestick chart in the form of a table for ease of calculation, 

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation

We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day)
Calculating it for the four options, 
Stock F: 800/1700=8/17
Stock A: 1200/2000=3/5
Stock D: 900/750=90/75=6/5
Stock C: 600/1000=3/5
Clearly Stock D has the highest SPV.

Q2: Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). How many shares had an SPV greater than 0.5 on that day?

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT PreparationView Answer  Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation

Ans: 4

Writing down the values given in the candlestick chart in the form of a table for ease of calculation, 

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation
We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day)
Calculating it for the stocks 
Stock A: 1200/2000=3/5
Stock B: 600/1850=60/185
Stock C: 600/1000=3/5
Stock D: 900/750=90/75=6/5
Stock E: 300/1200=1/4
Stock F: 800/1700=8/17
Stock G: 900/1450=90/145
We need to check for stocks greater than 0.5 on that day, 
Stock A, Stock C, Stock D, Stock G have SPV greater than 0.5 that day. 
Hence, the answer is 4. 

Q3: Daily loss for a share is defined as (Opening price - Closing price) / (Opening price). Which among the shares A, B, F and G had the highest daily loss on that day?
(a) G
(b) B
(c) A
(d) F

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Ans: (c)

Writing down the values given in the candlestick chart in the form of a table for ease of calculation, 

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT PreparationDaily loss for a share is defined as (Opening price - Closing price) / (Opening price)
Calculating this for the options: 
Stock A: 400/2200=2/11
Stock B: 300/2000=3/20
Stock F: 200/1800=1/9
Stock G gained money that day
Hence Stock A has the highest Daily Loss.

Q4: What would have been the percentage wealth gain for a trader, who bought equal numbers of all bullish shares at opening price and sold them at their day’s high?
(a) 80%
(b) 50%
(c) 72%
(d) 100%

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Ans: (a)

Writing down the values given in the candlestick chart in the form of a table for ease of calculation, 

Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT PreparationThere are three bullish shares, C D and G
Lets say a trader buys one share of each of these stocks, and sells them at their day's high
One share of C at opening is 800, sells at 1400
One share of D at opening is 500, 1200
One share of G at opening is 1200, 1900
Total Investment is 2500, and total money after selling is 4500
That is an 80% return since,  
Practice Question - 50 (Special Charts) | 100 DILR Questions for CAT Preparation

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FAQs on Practice Question - 50 (Special Charts) - 100 DILR Questions for CAT Preparation

1. What are special charts and how are they used in data representation?
Ans. Special charts are graphical representations that present data in a visually engaging way, helping to simplify complex information. They include pie charts, bar graphs, line charts, and histograms, among others. These charts are used to highlight trends, compare values, and illustrate relationships among data points, making it easier for audiences to understand and analyze the information.
2. What are the key differences between pie charts and bar charts?
Ans. Pie charts are circular graphs divided into slices to illustrate numerical proportions, making them effective for showing relative sizes of parts to a whole. Bar charts, on the other hand, use rectangular bars to represent values; they are better suited for comparing multiple categories or showing changes over time. While pie charts are ideal for limited categories, bar charts can accommodate more data without losing clarity.
3. How should one choose the right type of chart for data presentation?
Ans. Choosing the right chart depends on the nature of the data and the message you want to convey. If you want to show proportions, a pie chart may be suitable. For comparing quantities across categories, a bar chart is often the best choice. Line charts are excellent for illustrating trends over time. It's essential to consider the audience's understanding and the complexity of the data when selecting a chart type.
4. What are common mistakes to avoid when creating special charts?
Ans. Common mistakes include cluttering the chart with too much information, using inappropriate chart types, neglecting to label axes and data points, and choosing colors that are difficult to distinguish. Additionally, failing to provide context or source information can lead to misinterpretation of the data. Keeping charts simple and focused enhances their effectiveness.
5. How can special charts enhance data storytelling?
Ans. Special charts enhance data storytelling by providing a visual narrative that can evoke emotions and make complex data more relatable. They help highlight key insights, trends, and comparisons, allowing the audience to grasp the story behind the numbers quickly. By combining visuals with concise explanations, special charts can transform raw data into compelling stories that drive engagement and understanding.
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