CAT 2024 Slot 1 DILR Question & Solution
Data Set
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.
Question 1
Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). Which among the shares A, C, D and F had the highest SPV on that day?
Solution:
Writing down the values given in the candlestick chart in the form of a table for ease of calculation,
We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day)
Calculating it for the four options,
Stock F: 800/1700=8/17
Stock A: 1200/2000=3/5
Stock D: 900/750=90/75=6/5
Stock C: 600/1000=3/5
Clearly Stock D has the highest SPV.
Question 2
Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day). How many shares had an SPV greater than 0.5 on that day?
Solution:
Writing down the values given in the candlestick chart in the form of a table for ease of calculation,
We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening and closing prices during the day)
Calculating it for the stocks
Stock A: 1200/2000=3/5
Stock B: 600/1850=60/185
Stock C: 600/1000=3/5
Stock D: 900/750=90/75=6/5
Stock E: 300/1200=1/4
Stock F: 800/1700=8/17
Stock G: 900/1450=90/145
We need to check for stocks greater than 0.5 on that day,
Stock A, Stock C, Stock D, Stock G have SPV greater than 0.5 that day.
Hence, the answer is 4.
Question 3
Daily loss for a share is defined as (Opening price - Closing price) / (Opening price). Which among the shares A, B, F and G had the highest daily loss on that day?
Solution:
Writing down the values given in the candlestick chart in the form of a table for ease of calculation,
Daily loss for a share is defined as (Opening price - Closing price) / (Opening price)
Calculating this for the options:
Stock A: 400/2200=2/11
Stock B: 300/2000=3/20
Stock F: 200/1800=1/9
Stock G gained money that day
Hence Stock A has the highest Daily Loss.
Question 4
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?
Solution:
Writing down the values given in the candlestick chart in the form of a table for ease of calculation,
There are three bullish shares, C D and G
Lets say a trader buys one share of each of these stocks, and sells them at their day's high
One share of C at opening is 800, sells at 1400
One share of D at opening is 500, 1200
One share of G at opening is 1200, 1900
Total Investment is 2500, and total money after selling is 4500
That is an 80% return since, $\dfrac{\left(4500-2500\right)}{2500}=0.8$