GMAT Practice Problem #1
August 10th, 2009
Grant gives Dana $1. Dana stares at the dollar, calls Grant a jackass, and then gives $1 to Grant. How much did Grant profit from this transaction?
A) Grant lost $1.
B) Grant lost the time value of $1 over Dana’s holding period.
C) Grant’s net profit is zero.
D) Grant made $1.
E) Grant made $5.
Correct answer: E) Grant made $5.
If you don’t understand why, you don’t need to.
as i concluded in my post, grant is indeed a jackass, now an even bigger one than before.
Comment by beef — August 10, 2009 @ 9:44 am
don’t hate the player
Comment by rice — August 10, 2009 @ 6:03 pm
don’t worry… it’s split equally between the player and the player on the sidelines with a five dollar bill.
Comment by beef — August 12, 2009 @ 10:43 am
good thing markets are efficient.
Comment by rice — August 15, 2009 @ 9:26 am
if nothing else.
Comment by beef — August 17, 2009 @ 1:53 pm