Asset allocation R 18, EOC 12 (wealth percentiles) graph

[sachin_patel]

Can someone explain in simple language this answer?
I don’t understand how intutively they came up with log base 10(portfolio)
Also, can you tell me if you would have been able to figure it out if you had not read the answer? (s2000 or CPK, this does not apply to you )

 

[cpk123]

look at the y-axis. 10, 100000, 1000000000 -> these numbers become equidistant (which is what they show) only on a log to base 10 scale.
because 10*10^4 = 100000
and 100000 * 10^4 = 1000000000

 

[sachin_patel]

I see. .Thanks…
What do you think about quality of question in terms of exam?