CAT DILR Questions | CAT Analytical Reasoning questions

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FundaMakers as a team has taken a step to bring you all the solutions of the Data Interpretation and Logical Reasoning (DILR) asked in the Previous Year CAT exam. CAT question bank offered by FundaMakers is a power-packed topic-wise compilation of the entire CAT previous year questions. DILR  is mostly about meticulous practice, as there are minimal concepts to learn. To maximize your CAT score in DILR make use of FundaMakers CAT Question BankQuestions from CAT previous years” examination papers have been incorporated. Let’s get started with CAT Past Year Data Interpretation and Logical Reasoning (DILR) Questions.

Comprehension

Directions for Questions: Answer the questions on the basis of the information given below.

Abdul, Bikram and Chetan are three professional traders who trade in shares of a company XYZ Ltd. Abdul follows the strategy of buying at the opening of the day at 10 am and selling the whole lot at the close of the day at 3 pm. Bikram follows the strategy of buying at hourly intervals: 10 am, 11 am, 12 noon, 1 pm and 2 pm, and selling the whole lot at the close of the day. Further, he buys an equal number of shares in each purchase. Chetan follows a similar pattern as Bikram but his strategy is somewhat different. Chetan’s total investment amount is divided equally among his purchases. The profit or loss made by each investor is the difference between the sale value at the close of the day less the investment in purchase. The “return” for each investor is defined as the ratio of the profit or loss to the investment amount expressed as a percentage.

CAT/2008

Question . 121

One day, two other traders, Dane and Emily joined Abdul, Bikram and Chetan for trading in the shares of XYZ Ltd. Dane followed a strategy of buying equal numbers of shares at 10 am, 11 am and 12 noon, and selling the same numbers at 1 pm, 2 pm and 3 pm. Emily, on the other hand, followed the strategy of buying shares using all her money at 10 am and selling all of them at 12 noon and again buying the shares for all the money at 1 pm and again selling all of them at the close of the day at 3 pm. At the close of the day the following was observed:

(i) Abdul lost money in the transactions.

(ii) Both Dane and Emily made profits.

(iii) There was an increase in share price during the closing hour compared to the price at 2 pm.

(iv) Share price at 12 noon was lower than the opening price.

 

Share price was at its highest at

View Answer

Explanatory Answer

Method of solving this CAT DILR Question from Analytical Reasoning question

Correct option: A

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