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Get access to the detailed solutions to the previous years questions asked in IIFT exam
As the numbers are far apart we can approximate the money allocation data to the nearest multiple of 0.5. The money allocation data can be approximated as below.
Let us assume that Rs. 100 is invested in each fund.
Total return on investing Rs. 100 in fund Alpha =
1.5*1.05+3*1.12+7*.95+1.5*1.15+7.5*1.11+10*1.21
+9*1.08+26*1.06+14.5*1.25+6*1.18+4.5*1.10+5.5*.98+4*1.17 = Rs. 111.24.
Hence, net return per rupee in fund Alpha =Rs. 1.1124.
Similarly, we can calculate total return on investing Rs. 100 in fund Beta and Gama.
Net return per rupee in fund Beta = Rs. 1.07225.
Net return per rupee in fund Gama = Rs. 1.0948.
We can see that return per rupee is the highest for Alpha fund. Hence, option A is the correct answer.