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.
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.
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Work out how many shares of each stock were bought, then compare the total buying cost with the total selling value.
Updated On: Jul 22, 2026
- 0
- 5
- 10
- 20
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The Correct Option is A
Solution and Explanation
Step 1: Find the number of shares bought in each stock.
Stock A costs Rs. 50 per share on the day of purchase, and the investor puts in Rs. 100, so the number of shares of Stock A bought is
\[ \frac{100}{50} = 2 \text{ shares} \]
Stock B costs Rs. 80 per share, and the investor puts in Rs. 80, so the number of shares of Stock B bought is
\[ \frac{80}{80} = 1 \text{ share} \]
Step 2: Find the total amount invested.
The total money put in is
\[ 100 + 80 = \text{Rs. } 180 \]
Step 3: Find the sale value the next day.
Stock A is now worth Rs. 55 per share, so the 2 shares of Stock A sell for
\[ 2 \times 55 = \text{Rs. } 110 \]
Stock B is now worth Rs. 70 per share, so the 1 share of Stock B sells for
\[ 1 \times 70 = \text{Rs. } 70 \]
The total money received from selling everything is
\[ 110 + 70 = \text{Rs. } 180 \]
Step 4: Find the profit.
Profit is the amount received minus the amount invested:
\[ 180 - 180 = 0 \]
Step 5: Rule out the other options.
Option (B) Rs. 5, option (C) Rs. 10 and option (D) Rs. 20 would only be correct if the number of shares in each stock were miscounted, for instance by dividing the wrong price into the wrong investment amount. Once the shares are correctly worked out as 2 units of Stock A and 1 unit of Stock B, the sale value exactly equals the amount invested, so none of these nonzero profits is possible.
Step 6: Final Answer.
The investor makes no profit and no loss.
\[ \boxed{\text{Rs. } 0} \]
Stock A costs Rs. 50 per share on the day of purchase, and the investor puts in Rs. 100, so the number of shares of Stock A bought is
\[ \frac{100}{50} = 2 \text{ shares} \]
Stock B costs Rs. 80 per share, and the investor puts in Rs. 80, so the number of shares of Stock B bought is
\[ \frac{80}{80} = 1 \text{ share} \]
Step 2: Find the total amount invested.
The total money put in is
\[ 100 + 80 = \text{Rs. } 180 \]
Step 3: Find the sale value the next day.
Stock A is now worth Rs. 55 per share, so the 2 shares of Stock A sell for
\[ 2 \times 55 = \text{Rs. } 110 \]
Stock B is now worth Rs. 70 per share, so the 1 share of Stock B sells for
\[ 1 \times 70 = \text{Rs. } 70 \]
The total money received from selling everything is
\[ 110 + 70 = \text{Rs. } 180 \]
Step 4: Find the profit.
Profit is the amount received minus the amount invested:
\[ 180 - 180 = 0 \]
Step 5: Rule out the other options.
Option (B) Rs. 5, option (C) Rs. 10 and option (D) Rs. 20 would only be correct if the number of shares in each stock were miscounted, for instance by dividing the wrong price into the wrong investment amount. Once the shares are correctly worked out as 2 units of Stock A and 1 unit of Stock B, the sale value exactly equals the amount invested, so none of these nonzero profits is possible.
Step 6: Final Answer.
The investor makes no profit and no loss.
\[ \boxed{\text{Rs. } 0} \]
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