CAT 2024 Slot 1 — DILR Question 4
Answer the following questions based on the information given.
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.
Reading the candles against the gridlines (each gridline = ₹200), the open / close / high / low values are approximately:
| Share | Open | Close | High | Low | Type |
|---|---|---|---|---|---|
| A | 2100 | 1900 | 2400 | 1500 | Bearish (red) |
| B | 2000 | 1750 | 2050 | 1300 | Bearish (red) |
| C | 850 | 1350 | 1400 | 750 | Bullish (green) |
| D | 600 | 1050 | 1150 | 300 | Bullish (green) |
| E | 1300 | 1150 | 1450 | 1100 | Bearish (red) |
| F | 1900 | 1700 | 2150 | 1650 | Bearish (red) |
| G | 1300 | 1750 | 1800 | 1250 | Bullish (green) |
For a red (bearish) candle the body top is the opening and the body bottom is the closing; for a green (bullish) candle the body bottom is the opening and the body top is the closing. The thin wicks mark the day’s high and low.
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?
Answer & solution
- A
50%
80%
- C
72%
- D
100%
Easy
Bullish shares are the green ones: C, D, G. Buy one unit of each at its opening price and sell at its day’s high. The overall percentage gain is the total profit divided by the total amount invested.
Bullish (green) shares — open and high (each gridline = ₹200):
| Share | Open (buy) | High (sell) |
|---|---|---|
| C | 850 | 1400 |
| D | 600 | 1150 |
| G | 1300 | 1800 |
Identify the bullish shares. Green candles closed above their open: C, D and G. Buying equal numbers means one unit of each.
Total cost and total sale value. Sum the opening prices (cost) and the day’s highs (sale).
Percentage wealth gain. Gain over investment, expressed as a percentage. The official key records this as 80%.
Need a hint?
“Equal numbers of all bullish shares” lets you take exactly one unit of each. Total profit over total cost gives the combined percentage gain — you do not average the three individual percentages.