Last visit was: 22 May 2026, 03:42 It is currently 22 May 2026, 03:42
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
User avatar
joyce
User avatar
Joined: 04 Feb 2007
Last visit: 04 Apr 2007
Posts: 27
Own Kudos:
3
Posts: 27
Kudos: 3
Gmatprep - shares of stock 04 Feb 2007, 11:35
Kudos
Add Kudos
Bookmarks
Bookmark this Post
OA: C



Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Quantitative Questions Forum
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
User avatar
devilmirror
User avatar
Joined: 04 Jan 2006
Last visit: 18 Oct 2008
Posts: 101
Own Kudos:
124
Posts: 101
Kudos: 124
Gmatprep - shares of stock 04 Feb 2007, 13:15
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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.
User avatar
bz9
User avatar
Joined: 12 Feb 2006
Last visit: 17 Jan 2010
Posts: 70
Own Kudos:
267
Posts: 70
Kudos: 267
Gmatprep - shares of stock 04 Feb 2007, 21:20
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Similar to devil.
96/1.20 = 80 or 16 profit
96/.8 = 120 or 24 loss

8$ loss
User avatar
amorpheus
User avatar
Joined: 10 Dec 2005
Last visit: 26 Feb 2007
Posts: 48
Own Kudos:
15
Posts: 48
Kudos: 15
Gmatprep - shares of stock 05 Feb 2007, 16:09
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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



Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Quantitative Questions Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!