The table below 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
For Marico:
Buy price on Monday = 346
Total number of shares bought = 3600000/346 = 10404.62. Thus, he will buy 10404 shares.
Sell price on Friday = 372
Profit per share = 372 - 346 = 26
Total Profit = 10404 * 26 = Rs 270504
For HUL:
Buy price on Monday = 1933
Total number of shares bought = 3600000/1933 = 1862.39. Thus, he will buy 1862 shares.
Sell price on Friday = 1966
Profit per share = 1966 - 1933 = 33
Total Profit = 1862 * 33 = Rs 61446
For ITC:
Buy price on Monday = 238
Total number of shares bought = 3600000/238 = 15126.05. Thus, he will buy 15126 shares.
Sell price on Friday = 253
Profit per share = 253 - 238 = 15
Total Profit = 15126 * 15 = Rs 226890
For Britannia:
Buy price on Monday = 3046
Total number of shares bought = 3600000/3046 = 1181.87. Thus, he will buy 1181 shares.
Sell price on Friday = 3140
Profit per share = 3140 - 3046 = 134
Total Profit = 1181 * 134 = Rs 158254
Thus, the profit is maximum for Marico.
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