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 units of each stock the investment buys, then compare buying and selling value.

Answer 1

The Correct Option is A

Step 1: Work out the profit from Stock A alone.
Rs. 100 buys $100/50 = 2$ units of Stock A at Rs. 50 each.
Selling these 2 units at Rs. 55 each gives $2 \times 55 = 110$ rupees, so the gain on Stock A is $110 - 100 = 10$ rupees.

Step 2: Work out the profit or loss from Stock B alone.
Rs. 80 buys $80/80 = 1$ unit of Stock B at Rs. 80.
Selling this 1 unit at Rs. 70 gives 70 rupees, so Stock B shows a loss of $80 - 70 = 10$ rupees.

Step 3: Combine the two results.
Net profit = gain on Stock A minus loss on Stock B = $10 - 10 = 0$.

Final Answer:
The Rs. 10 gain on Stock A exactly cancels the Rs. 10 loss on Stock B, so the overall profit is 0. \[ \boxed{\text{Profit} = Rs.\ 0} \]