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:

Find how many units of each stock the investor buys, then compare the total value of the holdings on the two days.

Answer 1

The Correct Option is A

Step 1: Find the number of units bought in each stock.
Stock A costs Rs. 50 per unit, and the investor puts in Rs. 100, so the number of units of Stock A bought is
\[ \frac{100}{50} = 2 \text{ units} \]
Stock B costs Rs. 80 per unit, and the investor puts in Rs. 80, so the number of units of Stock B bought is
\[ \frac{80}{80} = 1 \text{ unit} \]

Step 2: Find the total amount invested.
\[ \text{Total invested} = 100 + 80 = 180 \text{ Rs.} \]

Step 3: Find the selling value of each stock the next day.
The next day, Stock A is worth Rs. 55 per unit, so the 2 units are worth
\[ 2 \times 55 = 110 \text{ Rs.} \]
Stock B is worth Rs. 70 per unit, so the 1 unit is worth
\[ 1 \times 70 = 70 \text{ Rs.} \]

Step 4: Find the total amount received on selling.
\[ \text{Total received} = 110 + 70 = 180 \text{ Rs.} \]

Step 5: Find the profit.
\[ \text{Profit} = \text{Total received} - \text{Total invested} = 180 - 180 = 0 \]

Step 6: Final answer.
The investor makes no profit, so the profit is
\[ \boxed{0} \]
Hence, the correct option is (A).