Common Admission Test (CAT) is one of the most sought after MBA entrance exams, candidates are advised to practice previous years question papers. They can check here the complete CAT 2001 question paper that has been solved. This will help them in understanding the question paper. Download CAT 2006 for practising and analyzing the kind of questions asked in this prestigious exam

DIRECTIONS for questions 1 to 5: Answer these questions on the basis of the information given below.

Two traders, Chetan and Michael, were involved in the buying and selling of MCS shares over five trading days. At the beginning of the first day, the MCS share was priced at Rs. 100, while at the end of the fifth day it was priced at Rs. 110. At the end of each day, the MCS share price either went up by Rs. 10, or else, it came down by Rs. 10. Both Chetan and Michael took buying and selling decisions at the end of each trading day. The beginning price of MCS share on a given day was the same as the ending price of the previous day. Chetan and Michael started with the same amount of cash, and had enough of both, Below are some additional facts about how Chetan and Michael traded over the five trading days.

• Each day if the price went up, Chetan sold 10 shares of MCS at the closing price. On the other hand, each day if the price went down, he bought 10 shares at the closing price.

• If on any day, the closing price was above Rs. 110, then Michael sold 10 shares of MCS, while if it was below Rs. 90, he bought 10 shares, all at the closing price.

**1.** If Chetan sold 10 shares of MCS on three consecutive days, while Michael sold 10 shares only once during the five days, what was the price of MCS at the end of day 3?**(a)** Rs 90**(b)** Rs 100**(c)** Rs 110**(d)** Rs 120**(e)** Rs 130**Ans: (c)****2. **If Michael ended up with 20 more shares than Chetan at the end of day 5, what was the price of the share at the end of day 3?**(a)** Rs 90**(b) **Rs 100**(c)** Rs 110**(d)** Rs 120**(e)** Rs 130**Ans: (a)****3.** What could have been the maximum possible increase in combined cash balance of Chetan and Michael at the end of the fifth day?**(a)** Rs 3700**(b)** Rs 4000**(c)** Rs 4700**(d)** Rs 5000**(e)** Rs 6000

Ans: (d)**4.** If Chetan ended up with Rs 1300 more cash than Michael at the end of day 5, what was the price of MCS share at the end of day 4?**(a)** Rs 90**(b)** Rs 100**(c)** Rs 110**(d)** Rs 120**(e)** Not uniquely determinable**Ans: (b)**

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**5.** If Michael ended up with Rs 100 less cash than Chetan at the end of day 5, what was the difference in the number of shares possessed by Michael and Chetan (at the end of day 5)?**(a)** Michael had 10 less shares than Chetan.**(b)** Michael had10 more shares than Chetan.**(c)** Chetan had 10 more shares than Michael.**(d)** Chetan had 20 more shares than Michael.**(e)** Both had the same number of shares.**Ans: (e)****Download CAT 2006 with Answer Key**

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