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# A stockbroker has made a profit on 80% of his 40 trades this

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A stockbroker has made a profit on 80% of his 40 trades this [#permalink]  16 Jun 2018, 09:02
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57% (01:17) correct 42% (01:55) wrong based on 7 sessions
A stockbroker has made a profit on 80% of his 40 trades this year.

 Quantity A Quantity B 23 The maximum number of consecutive trades that the stockbroker can lose before his profitable trades drop below 50% for the year

A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.
[Reveal] Spoiler: OA

Last edited by Carcass on 17 Jun 2018, 02:01, edited 2 times in total.
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Re: Percent [#permalink]  16 Jun 2018, 10:34
Expert's post
Are you sure this is a question from the OG 1st edition ??

Moreover, it is QCQ not a multiple answer choice question
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Re: Percent [#permalink]  16 Jun 2018, 13:43
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Shrija Roy wrote:
A stockbroker has made a profit on 80% of his 40 trades this year.

A: 23
B: The maximum number of consecutive trades that the stockbroker can lose before his profitable trades drop below 50% for the year

The boker has already made 40 trades and 80% of them are profitable.

Let us suppose that the broker makes $$x$$ more trades and looses them all.

Now this value of x is such that his percent of profitable trades become 50%.

Initially the broker had made: 40 trades of which 80% were profitable or $$\frac{80}{100} \times 40=32$$ profitable and 8 loss making.

Now with the new $$x$$ number of trades he is 50% loss making so $$\frac{50}{100} \times (40+x)=8+x$$.

Remember that he already had 8 trades which lost money previously. Solve for x and you shall get the value $$x=24$$.

So if he makes 24 more trades and losses them all he will have 50% profitability.

You can cross check by putting the values

40 trades ---------------- 32 profit ---------------- 8 loss

40 +24 trades ------------ 32 profit ---------------- 8 loss +24 loss =32 loss.

After 24 the profitability is 50% not BELOW 50%.

He needs to loose 25 trades to go below 50%. Hence option B is correct!
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Re: Percent   [#permalink] 16 Jun 2018, 13:43
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