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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

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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.


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Method I:

Cost price for share A = 100 * 6,000 = 60,000
Cost price for share B = 100 * 4,000 = 40,000

Gain happens: \(\frac{3}{ 8}\) * CP of share B = \(\frac{3}{ 8} * 40,000 = 15,000\)

NOTE :TRAP: Common Error: Now, if the price is reversed, the number of each share is still the same i.e. 100 so, it won't affect the CP. Hence, the net result will be the same..

But


The gain amount will change as it is \(\frac{3}{ 8}\) of CP of share B.

New CP of share B = Cost price for share B = 100 * 6,000 = 60,000

Gain happens: \(\frac{3}{ 8}\) * CP of share B = \(\frac{3}{ 8} * 60,000 = 22,500\)

Net result: \(\frac{22,500}{ 15,000} = \frac{225}{150} = \frac{3}{2} \)

Answer E


----------------------------------------------------------------------

Method II:

The number of shares remains the same even if the price is reversed.

Earlier A = 6 and B = 4

Later A= 4 and B = 6

\(\frac{3}{ 8}\) of CP of B.

Net result : \(\frac{3}{ 8}\) of 6 divided by \(\frac{3}{ 8}\) of 4 :

=> \(\frac{6}{4} = \frac{3}{2} \)

Answer E
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