Question: Samantha's investment portfolio consists of three stocks: an airline, a bank, and a computer company. In the month of February, the price of the airline's stock rose by 10%, that of the bank decreased by 15% and that of the computer company also decreased by 15%, but the overall value of her portfolio increased. If Samantha owns equal amounts of all three stocks, which of the following could be the initial prices of the three stocks in the order airline, bank, and computer company respectively?

1. $55, $85, $40
2. $65, $60, $60
3. $65, $55, $90
4. $85, $25, $20
5. $25, $60, $70

Correct Answer: D

Solution and Explanation:

There is only one approach to this problem.

Approach Solution 1:

As we know that Samantha owns equal amounts of stocks, the 10% increase alone should set off the 15% decrease in each of the other two stocks
This is the stock in which the increase should have a higher value than the two stocks which are decreased.
So we can observe options B and D and we noticed that option D is a safer bet and is the required option.

“Samantha’s investment portfolio consists of three stocks: an airline, a bank, and a computer company. In the month of February, the price of the airline’s stock rose by 10%, that of the bank decreased by 15% and that of the computer company also decreased by 15%, but the overall value of her portfolio increased. If Samantha owns equal amounts of all three stocks, which of the following could be the initial prices of the three stocks in the order airline, bank, and computer company respectively?”- is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book “GMAT Official Guide Quantitative Review”. To solve GMAT Problem Solving questions a student must have knowledge about a good amount of qualitative skills. The candidates can follow GMAT Quant practice papers to go through different types of questions that will help them to achieve high score in the exam.

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