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# Gmatprep - shares of stock

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Intern
Joined: 04 Feb 2007
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Gmatprep - shares of stock [#permalink]  04 Feb 2007, 10:35
OA: C
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Senior Manager
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[#permalink]  04 Feb 2007, 12:15
On Profitable Stock: let P is the real profit he get.
He sold $96 based on sales price of 100% + 20% = 120% (He earn 20% on this sales) Therefore, Profit/Sales Price = 20/120 = P/96 P = 96/6 = 16 On Non-Profitable Stock: Let L is the money he lost. He sold$96 based on sales price of 100% - 20% = 80% (He lost 20% on this sales)
Therefore,
Lost/Sales Price = 20/80 = L/96
L = 96/4 = 24

Total Profit = +16 - 24 = -8

This shows that he loss total of $8.00. B. is the answer. Manager Joined: 12 Feb 2006 Posts: 115 Followers: 1 Kudos [?]: 26 [0], given: 0 [#permalink] 04 Feb 2007, 20:20 Similar to devil. 96/1.20 = 80 or 16 profit 96/.8 = 120 or 24 loss 8$ loss
Manager
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[#permalink]  05 Feb 2007, 15:09
I solved it like this:

We know the Sale price of each stock that is $96 Now Profit = Sale price - Purchase price From 1st condition we know: Profit = 20%(Purchase price) Hence, 20%(Purchase price) = 96 - Purchase price 1.2(Purchase price) = 96 Purchase price = 96/1.2 = 80 Loss = Purchase price - Sale price From 2nd condition we know: Loss= 20%(Purchase price) Hence, 20%(Purchase price) = Purchase price - 96 0.8(Purchase price) = 96 Purchase price = 96/0.8 = 120 Hence his total purchase price for 2 stocks is 120+80 = 200 and he sold both the stocks for 192 Hence there is a loss of$8
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[#permalink] 05 Feb 2007, 15:09
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# Gmatprep - shares of stock

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