Question: Absolute different between the Total DI and Total FI is highest for which sector?
Explanation:
Here, because one of the options is “None of the above”, you will need to calculate total DI and total FI for each sector.
Some data can already be found from the previous question.
Energy: DI ∼ FI = 6600 – 3700 = 2900
Financial Services: 7000 – 5100 = 1900
Now consider each option.
Technology: (2500 + 2800 + 5000 + 2000 + 4000) – (1500 + 1000 + 1500 + 1200 + 3000) = 16300 – 8200 = 8100
Healthcare: (3000 + 3000 + 6000 + 1500 + 600) – (2000 + 600 + 400 + 1000 + 3500) = 14100 – 7500 = 6600
Hence, option (b) can be eliminated.
Basic Material: (1500 + 1500 + 2500 + 2000 + 2500) – (800 + 1300 + 1400 + 900 + 800) = 10000 – 5200 = 4800
Hence, option (c) can be eliminated.
Among “None of the Above”, Energy and Financial Services can be ignored.
Only Communication Services, Consumer Cyclical, Consumer Defensive and Real Estate need to be compared with Technology (8100).
Communication Services: (2000 + 1200 + 1600 + 1000 + 500) – (1400 + 1000 + 1100 + 300 + 1200) = 6300 – 5000 = 1300
Hence, this can be ignored.
Consumer Cyclical: (1500 + 1500 + 3000 + 700 + 1900) – (1000 + 1200 + 1100 + 500 + 900) = 8600 – 4700 = 3900
Hence, this can also be ignored.
Consumer Defensive: (1300 + 700 + 1500 + 2000 + 1800) – (1000 + 1600 + 800 + 500 + 1600) = 7300 – 5500 = 1800
Hence, this can also be ignored.
Real Estate: (500 + 1000 + 4000 + 6000 + 2000) – (2000 + 1500 + 3000 + 1500 + 2100) = 13500 – 10100 = 2400
Hence, this can also be ignored.
Hence, all the sectors under “None of the above” have a lower value compared to Technology.
Hence, option (a).