GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 07 Apr 2020, 15:39

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.

Close

Request Expert Reply

Confirm Cancel

Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 62619
Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh  [#permalink]

Show Tags

New post 07 Feb 2020, 06:51
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

65% (02:34) correct 35% (02:34) wrong based on 48 sessions

HideShow timer Statistics

Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 shares of stock B. She later sold the same shares of both stocks, gaining 3/8 the amount she paid for stock B. If the prices she had paid for the stocks had been reversed and everything else remained the same, then the net result would have been:

(A) The same.

(B) A loss 1 1/2 times as much.

(C) A loss 2 times as much.

(D) A loss 9 times as much.

(E) A gain \(1 \frac{1}{2}\) times as much.


Are You Up For the Challenge: 700 Level Questions

_________________
CEO
CEO
User avatar
V
Joined: 03 Jun 2019
Posts: 2503
Location: India
GMAT 1: 690 Q50 V34
WE: Engineering (Transportation)
Premium Member Reviews Badge CAT Tests
Re: Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh  [#permalink]

Show Tags

New post 07 Feb 2020, 16:09
Bunuel wrote:
Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 shares of stock B. She later sold the same shares of both stocks, gaining 3/8 the amount she paid for stock B. If the prices she had paid for the stocks had been reversed and everything else remained the same, then the net result would have been:

(A) The same.

(B) A loss 1 1/2 times as much.

(C) A loss 2 times as much.

(D) A loss 9 times as much.

(E) A gain \(1 \frac{1}{2}\) times as much.


Are You Up For the Challenge: 700 Level Questions


Given:
1. Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 shares of stock B.
2. She later sold the same shares of both stocks, gaining 3/8 the amount she paid for stock B.

Asked: If the prices she had paid for the stocks had been reversed and everything else remained the same, then the net result would have been:

Stock A:
Number of shares = 100
Total amount invested = $6000
Purchase price = $6000/100 = $600

Stock B:
Number of shares = 100
Total amount invested = $4000
Purchase price = $4000/100 = $400

Total gain by selling all shares = 3/8 * $4000 = $1500

If price for shares had been reversed

Stock A:
Number of shares = 100
Total amount invested = $4000
Purchase price = $4000/100 = $400

Stock B:
Number of shares = 100
Total amount invested = $6000
Purchase price = $6000/100 = $600

Total gain by selling all shares = 3/8*$6000 = $2250

Net gain = $2250/$1500 = 3/2 = 1.5

IMO E
Manager
Manager
User avatar
B
Joined: 12 Oct 2019
Posts: 67
Location: India
Concentration: Marketing, General Management
GMAT 1: 720 Q48 V41
GMAT 2: 730 Q50 V39
GPA: 4
WE: Information Technology (Computer Software)
Re: Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh  [#permalink]

Show Tags

New post 07 Feb 2020, 19:11
Quick solution (time taken :40 secs)

net gain in the 1st transaction = 3/8 of 4000 = 1500 Rs.
now the prices are reversed. Since the number of shares is the same for Stock A and B, shares in Stock B were purchased at 6000 and stock A at 4000.
Net gain now = 3/8 * 6000 = 2250
the CP is same in both the cases. Since the profit increased, only one option depicts that IMO E
GMAT Club Legend
GMAT Club Legend
User avatar
V
Joined: 18 Aug 2017
Posts: 6025
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
GMAT ToolKit User Reviews Badge
Re: Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh  [#permalink]

Show Tags

New post 10 Feb 2020, 01:49
Net price per share of A = 6000/100 ; 60 and B = 4000/100 = 40
net gain of B ; 40*3/8 ; 15$
and when price are reversed net gain of B now becomes; 60*3/8 ; 22.5
so net result of gain ; 22.5/15 ; 1.5 $
IMO E

Bunuel wrote:
Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 shares of stock B. She later sold the same shares of both stocks, gaining 3/8 the amount she paid for stock B. If the prices she had paid for the stocks had been reversed and everything else remained the same, then the net result would have been:

(A) The same.

(B) A loss 1 1/2 times as much.

(C) A loss 2 times as much.

(D) A loss 9 times as much.

(E) A gain \(1 \frac{1}{2}\) times as much.


Are You Up For the Challenge: 700 Level Questions
GMAT Club Bot
Re: Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh   [#permalink] 10 Feb 2020, 01:49
Display posts from previous: Sort by

Mrs. Stark paid $6,000 for 100 shares of stock A and $4,000 for 100 sh

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





cron

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne