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

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Joined: 02 Sep 2009
Posts: 64224
Mrs. Stark paid $6,000 for 100 shares of stock A and$4,000 for 100 sh  [#permalink]

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07 Feb 2020, 06:51
00:00

Difficulty:

75% (hard)

Question Stats:

63% (02:31) correct 37% (02:29) wrong based on 52 sessions

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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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Re: Mrs. Stark paid $6,000 for 100 shares of stock A and$4,000 for 100 sh  [#permalink]

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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
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Re: Mrs. Stark paid $6,000 for 100 shares of stock A and$4,000 for 100 sh  [#permalink]

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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
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Re: Mrs. Stark paid $6,000 for 100 shares of stock A and$4,000 for 100 sh  [#permalink]

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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
Re: Mrs. Stark paid $6,000 for 100 shares of stock A and$4,000 for 100 sh   [#permalink] 10 Feb 2020, 01:49