The values of Stock A and Stock B on a particular day are Rs. 50 and Rs. 80,
respectively. An investor invests Rs. 100 in Stock A and Rs. 80 in Stock B. He
sells all the stocks the next day when the value of Stock A is Rs. 55 and Stock B
is Rs. 70. The profit made by the investor is Rs. ________
The values of Stock A and Stock B on a particular day are Rs. 50 and Rs. 80,
respectively. An investor invests Rs. 100 in Stock A and Rs. 80 in Stock B. He
sells all the stocks the next day when the value of Stock A is Rs. 55 and Stock B
is Rs. 70. The profit made by the investor is Rs. ________
Show Hint
- 0
- 5
- 10
- 20
The Correct Option is A
Solution and Explanation
Use a value-comparison method instead of focusing first on profit percentage. The investor spends Rs. 100 on Stock A at Rs. 50 per share, so 2 shares are bought. The investor spends Rs. 80 on Stock B at Rs. 80 per share, so 1 share is bought.
On the next day, the 2 shares of Stock A are worth Rs. \(2 \times 55 = 110\). The 1 share of Stock B is worth Rs. \(1 \times 70 = 70\). Therefore, the total value after one day is Rs. \(110 + 70 = 180\).
The original investment was also Rs. \(100 + 80 = 180\). Since the final value equals the initial investment, the net profit is Rs. \(180 - 180 = 0\).
\[\boxed{\text{Profit} = \text{Rs. }0}\]
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