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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

The difference between the quoted buy and sell price of a stock is referred to as the spread of the stock. The average spread of the stocks is lowest on

Solution

✅ Correct Option: 1

For Monday:

Dabur: 462−460=2462 - 460 = 2

Marico: 346−345=1346 - 345 = 1

HUL: 1933−1931=21933 - 1931 = 2

ITC: 238−237=1238 - 237 = 1

Britannia: 3046−3044=23046 - 3044 = 2

Average spread = 2+1+2+1+25=1.6\frac{2 + 1 + 2 + 1 + 2}{5} = 1.6

For Tuesday:

Dabur: 458−455=3458 - 455 = 3

Marico: 336−335=1336 - 335 = 1

HUL: 1955−1952=31955 - 1952 = 3

ITC: 239−238=1239 - 238 = 1

Britannia: 3101−3100=13101 - 3100 = 1

Average spread = 3+1+3+1+15=1.8\frac{3 + 1 + 3 + 1 + 1}{5} = 1.8

For Thursday:

Dabur: 447−444=3447 - 444 = 3

Marico: 375−372=3375 - 372 = 3

HUL: 2048−2044=42048 - 2044 = 4

ITC: 225−221=4225 - 221 = 4

Britannia: 3027−3025=23027 - 3025 = 2

Average spread = 3+3+4+4+25=3.2\frac{3 + 3 + 4 + 4 + 2}{5} = 3.2

For Friday:

Dabur: 462−461=1462 - 461 = 1

Marico: 374−372=2374 - 372 = 2

HUL: 1969−1966=31969 - 1966 = 3

ITC: 256−253=3256 - 253 = 3

Britannia: 3144−3140=43144 - 3140 = 4

Average spread = 1+2+3+3+45=2.6\frac{1 + 2 + 3 + 3 + 4}{5} = 2.6

Comparing average spreads, the lowest average spread is on Monday at 1.61.6, therefore Monday is the correct answer.

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