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John sold 100 shares of stock for $96 per share. For half

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Re: John sold 100 shares of stock for $96 per share. For half  [#permalink]

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New post 16 Aug 2018, 07:54
GMATFIGHTER wrote:
John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?

A. No loss or gain
B. Gain of $400
C. Loss of $400
D. Gain of $800
E. Loss of $800


Total sale through shares = 100 * 96 = $9600

50 shares @20% profit, hence cost of these shares per share = 96/1.2 = $80

Total cost of these shares = 50 * 80 = $4000

50 shares @20% loss, hence cost of these shares per share = 96/0.8 = $120

Total cost of these shares = 50 * 120 = $6000

Total cost of 100 shares = $10,000


Hence there is a loss of $400


Answer C.


Thanks,
GyM
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Re: John sold 100 shares of stock for $96 per share. For half   [#permalink] 16 Aug 2018, 07:54

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