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kpkanupriyakhmi
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5 LB

by kpkanupriyakhmi Tue Mar 31, 2015 1:35 am

A stockbroker has made a profit on 80% of his 40 trades this year.
Quantity A
23
Quantity B
The maximum number of consecutive trades that the stockbroker can lose before his profitable trades drop below 50% for the year.
Didn't understand the Q and how to do?
Please reply ASAP.
n00bpron00bpron00b
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Re: 5 LB

by n00bpron00bpron00b Tue Mar 31, 2015 1:57 pm

I am not 100% sure if this is the right approach -

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


(80/100) * 40 = 32 profits ; so 8 losses (total 40 trades)

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


okay now, if he lost 1 more trade the equation becomes
32 profits
9 loss
total trades 41

profit margin = (profit)/total trades = x/100
32/41 = x/100
profit margin deceases to 78.04%

if he lost another consecutive trade the equation becomes
32 profits
10 loss
total trades 42
profit margin = 32/42 = x/100
profit margin decreases to 76.19

Instead of calculating for each and every consecutive loss, we can directly assume he lost 23 consecutive trades (since we are comparing with quantity A which is 23)

If he lost 23 consecutive trades
32 profits
23 loss
total trades 55
profit margin => 32/55 = x/100
x = 58.18 %

So he has to lose more than 23 consecutive trades for his profit to fall below 50%

Quantity (B) greater
kpkanupriyakhmi
Students
 
Posts: 48
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Re: 5 LB

by kpkanupriyakhmi Wed Apr 01, 2015 9:10 am

@noob I've seen you solving many Questions, Are you a student or a teacher as I need somebody's help to shortlist the colleges.
Please reply ASAP.
I don't have much time.
n00bpron00bpron00b
Students
 
Posts: 89
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Re: 5 LB

by n00bpron00bpron00b Wed Apr 01, 2015 7:10 pm

Hey kp,

Sorry, I have no knowledge regarding university/college selection. I think an expert/counsellor can guide you better.
tommywallach
Manhattan Prep Staff
 
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Re: 5 LB

by tommywallach Fri Apr 03, 2015 5:40 pm

Great explanation, Noob. And yes, kp, I highly recommend you don't use public forums like this for something as important as making college decisions. Find a reputable advisor system/program, or else reach out to the admissions departments of schools you're interested in and ask to speak to someone there. They're always happy to help!

-t