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Instructions

The graph below shows the end of the month market values of 4 shares for the period from January to June. Answer the following questions based on this graph.

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Question 65

Ram gives Shyam a share of C and a share of D and takes a share of A in return. At which month-end would the Ram's loss from this transaction, be the most?

Solution

Share

Loss from the transaction from Ram's standpoint is Sum of share prices of C and D - Share price of A.

So, loss from the transaction at the end of January is (40+60) - 100 - = 0
So, loss from the transaction at the end of February is (50+55) - 90= 15
So, loss from the transaction at the end of March is (60+50)-110 = 0
So, loss from the transaction at the end of April is (65+40) - 105 = 0
So, loss from the transaction at the end of May is (60+45) -100 = 5
So, loss from the transaction at the end of June is (55+45) - 110 = 0

So, the correct answer is February.

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