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 planned to invest Rs. 36,00,000 in purchasing the stocks of HUL on Monday, sell them off on Wednesday and use the entire proceeds to purchase the stocks of Britannia on the same day and sell them off again on Friday, then the total investment return during the week would be
For HUL:
Buy Price on Monday = 1933
Total stocks bought = 3600000/1933 = 1862.39. Thus, he will buy 1862 shares.
Sell price on Wednesday = 1979
Total amount after selling all stocks = 1862 * 1979 = 3684898
Now, his investment amount is 3684898
For Britannia:
Buy Price on Wednesday = 3115
Total stocks bought = 3684898/3115 = 1182.95. Thus, he will buy 1182 shares.
Sell price on Wednesday = 3140
Total amount after selling all stocks = 1182 * 3140 = 3711480
Profit % = [(3711480-3600000)/3600000] * 100 = 3.097%
This is roughly equal to 3.20%.
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