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 at 10:38PM

Can someone please explain the right answer?

Ben on June 27 at 11:37PM

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?