If neither Lorilou nor VELSOR offers 5-year bonds, then which one of the following must be true?

Tyler on December 31, 2019

Please explain

I may just be tired today, but can you explain why A is incorrect. I narrowed it down to either G or R can be doubled. Can we not have S and G in both? Thus leaving R out? Why must R be in both? Thank you.

4 Replies

Tyler on December 31, 2019

I figured it out. It has to do with the fact that there can only be 4 in 5 year bonds and 4 in 10 year bonds. If you select S and G for both then you end up with 5 Year:HSG and 10 year: LVRSG. Therefore since R must already be in 10 year bonds because of the last rule (L10 - R10) you must select R5 in order to maintain 4 in each type of bond. No need to respond. Thank you. (unless I'm completely wrong of course)

Zia on June 17, 2020

Can someone please explain the right answer?

Ben on June 27, 2020

Hi 3tromero and Zia, thanks for the questions.

Since we know that 5 year bonds and 10 year bonds must each have 4/6 variables, once we remove L and V from 5, this forces the rest in.

Now, G H R S are in 5. Since L and V must be placed, they go in 10. The condition of L in 10 forces R in 10. Therefore, we must have R in both. G and S can switch for the remaining spot in 10.

I hope this helps. Please let me know if you have any other questions!

Jayla on November 20 at 12:58AM

why we can't have HVSG in 5 and LVRS in 10 making V and S the two variables?