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IPMAT Indore 2020 PYQsMultiple Choice (Quants). Free, no login required.

The table below presents the quoted buy and sell prices of five stocks during the five trading days of a given week. The quoted sell price is the price at which an investor can sell a stock in the market. The quoted buy price is the price at which an investor can buy a stock from the market. All the quoted numbers are in Indian Rupees.

DayMondayTuesdayWednesdayThursdayFriday
QuoteSellBuySellBuySellBuySellBuySellBuy
Dabur460462455458432433444447461462
Marico345346335336365368372375372374
HUL1931193319521955197919812044204819661969
ITC237238238239246251221225253256
Britannia3044304631003101311031153025302731403144

If an investor had Rs 36,00,000 to invest in any particular single stock, and she could buy the stock only on Monday and sell it off only on Friday, then the stock she should buy on Monday to earn the maximum possible profit during the week is

Solution

Correct Option: 1

For each stock:

  1. Calculate how many shares can be bought on Monday with Rs 36,00,000
  2. Calculate the selling value on Friday
  3. Find the total profit

For Marico:

Buy price Monday = 346346

Number of shares = 3600000346=10404\lfloor\frac{3600000}{346}\rfloor = 10404 shares

Sell price Friday = 372372

Total value = 10404×372=387028810404 \times 372 = 3870288

Profit = 38702883600000=2702883870288 - 3600000 = 270288

For HUL:

Buy price Monday = 19331933

Number of shares = 36000001933=1862\lfloor\frac{3600000}{1933}\rfloor = 1862 shares

Sell price Friday = 19661966

Total value = 1862×1966=36606921862 \times 1966 = 3660692

Profit = 36606923600000=606923660692 - 3600000 = 60692

For ITC:

Buy price Monday = 238238

Number of shares = 3600000238=15126\lfloor\frac{3600000}{238}\rfloor = 15126 shares

Sell price Friday = 253253

Total value = 15126×253=382687815126 \times 253 = 3826878

Profit = 38268783600000=2268783826878 - 3600000 = 226878

For Britannia:

Buy price Monday = 30463046

Number of shares = 36000003046=1182\lfloor\frac{3600000}{3046}\rfloor = 1182 shares

Sell price Friday = 31403140

Total value = 1182×3140=37114801182 \times 3140 = 3711480

Profit = 37114803600000=1114803711480 - 3600000 = 111480

Comparing profits, Marico gives the maximum profit of Rs 270288270288, therefore Marico is the correct answer.

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