Loading...
UPSC 1995: The price fluctuations of 4 scrips in a stock market in the four quarters of a year are shown in the table below. Four different investors had the following portfolios of investment in the four companies throughout the year: Investor 1: 10 of A, 20 of B, 30 of C and 40 of D Investor 2: 40 of A, 10 of B, 20 of C and 30 of D Investor 3: 30 of A, 40 of B, 10 of C and 20 of D Investor 4: 20 of A, 30 of B, 40 of C and 10 of D In the light of the above, which one of the following statements is correct?
(a)Investor 2 has made the best investment
(b)Investor 1 has made the best investment
(c)Investor 2 suffered a net loss during the year
(d)Investor 3 suffered a net loss during the year
Attempt This Question
Not attemptedCorrect Answer: (b) Investor 1 has made the best investment
Calculating quarter-wise percentage changes for each scrip and weighting them by the investors’ holdings shows Investor 1’s heavy exposure to Scrip D (net +25 % over the year) outweighs modest gains/losses elsewhere, giving the highest overall portfolio return. Investor 2, though holding more of A, suffers from its net loss; Investors 3 and 4 fare worse. Thus Investor 1 made the best investment. ([edukemy.com](https://edukemy.com/blog/upsc-prelims-topic-wise-questions-indian-economy-money-banking-and-capital-market/?utm_source=openai))
Related Current Affairs
Related UPSC Questions
More from Financial Markets & Capital Markets
1995easy
To prevent recurrence of scams in Indian Capital Market, the Government of India has assigned regulatory powers to
1995easy
Which one of the following is the largest mutual fund organisation in India?
1997moderate
The behaviour of a fictitious stock market index (comprising a weighted average of the market prices of a selected list of companies including some mu
Related Indian Economy Topics
1995External Sector & Balance Of Payments
Which of the following pairs are correctly matched? I. Increase in foreign exchange reserves ................. Monetary expansion II. Low import growt
1995Economic Planning & Five-Year Plans
Which one of the following Five-Year Plans recognised human development as the core of all developmental efforts?
Frequently Asked Questions
What is the correct answer to this UPSC 1995 Indian Economy question?▼
The correct answer is option (b): Investor 1 has made the best investment. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Financial Markets & Capital Markets question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1995, GS Paper 1, as Question 146. It falls under Indian Economy > Financial Markets & Capital Markets.
What is the difficulty level of this UPSC question?▼
This question is rated "difficult". It is a challenging question that demands deep subject knowledge and analytical thinking.
How many UPSC Prelims questions have been asked from Financial Markets & Capital Markets?▼
UPSC has asked 39 questions from Financial Markets & Capital Markets (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.