The following table presents the quoted buy and sell prices of five stocks during the five trading days of a given week. The quoted sell price is the price at which an investor can sell a stock in…
Question and options
The following table presents the quoted buy and sell prices of five stocks during the five trading days of a given week. The quoted sell price is the price at which an investor can sell a stock in the market. The quoted buy price is the price at which an investor can buy a stock from the market. All the quoted numbers are in Indian Rupees.
If an investor had Rs 36,00,000 to invest in any particular single stock, and she could buy the stock only on Monday and sell it off only on Friday, then the stock she should buy on Monday to earn the maximum possible profit during the week is
| Day | Monday | Tuesday | Wednesday | Thursday | Friday | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Quote | Sell | Buy | Sell | Buy | Sell | Buy | Sell | Buy | Sell | Buy |
| Dabur | 460 | 462 | 455 | 458 | 432 | 433 | 444 | 447 | 461 | 462 |
| Marico | 345 | 346 | 335 | 336 | 365 | 368 | 372 | 375 | 372 | 374 |
| HUL | 1931 | 1933 | 1952 | 1955 | 1979 | 1981 | 2044 | 2048 | 1966 | 1969 |
| ITC | 237 | 238 | 238 | 239 | 246 | 251 | 221 | 225 | 253 | 256 |
| Britannia | 3044 | 3046 | 3100 | 3101 | 3110 | 3115 | 3025 | 3027 | 3140 | 3144 |
If an investor had Rs 36,00,000 to invest in any particular single stock, and she could buy the stock only on Monday and sell it off only on Friday, then the stock she should buy on Monday to earn the maximum possible profit during the week is
- Marico
- HUL
- ITC
- Britannia
Answer and explanation
Correct answer: A - Marico
Buy at Monday buy price, sell at Friday sell price. Returns: Marico 372/346=+7.5%, ITC 253/238=+6.3%, Britannia 3140/3046=+3.1%, HUL 1966/1933=+1.7% (Dabur loss). Same capital, so Marico maximizes profit.
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IPMAT Indore
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