Bunuel
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 QuestionsGiven:
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