Question

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.

• A. 0
• B. 5
• C. 10
• D. 20

Hint:

Work out how many shares of each stock were bought, then compare the total buying cost with the total selling value.

Answer 1

The Correct Option is A

Step 1: Work out the gain or loss per stock separately.
For Stock A, the investor bought $\frac{100}{50}=2$ shares at Rs. $50$ each and sold them at Rs. $55$ each. The gain per share is $55-50=\text{Rs. }5$, so the total gain from Stock A is
\[ 2\times5 = \text{Rs. } 10 \]

Step 2: Work out Stock B's result.
For Stock B, the investor bought $\frac{80}{80}=1$ share at Rs. $80$ and sold it at Rs. $70$. The loss per share is $80-70=\text{Rs. }10$, so the total loss from Stock B is
\[ 1\times10 = \text{Rs. } 10 \]

Step 3: Combine the two results.
The gain of Rs. $10$ from Stock A and the loss of Rs. $10$ from Stock B cancel out:
\[ 10 - 10 = 0 \]

Step 4: Check the other options.
A profit of Rs. $5$, Rs. $10$ or Rs. $20$ would mean the gain and loss did not fully offset, but the numbers here work out to exactly equal and opposite amounts, so those values do not fit.

Step 5: Conclude.
\[ \boxed{\text{Rs. } 0} \]