IPMAT Indore 2020 (MCQ) - 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 | PYQs + Solutions | AfterBoards
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Medium

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.
Day Monday Tuesday Wednesday Thursday Friday
Quote Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy
Dabur 460 462 455 458 432 433 444 447 461 462
Marico 345 346 335 336 365 368 372 375 372 374
HUL 1931 1933 1952 1955 1979 1981 2044 2048 1966 1969
ITC 237 238 238 239 246 251 221 225 253 256
Britannia 3044 3046 3100 3101 3110 3115 3025 3027 3140 3144

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

Correct Option: 1
For each stock: \newline 1. Calculate how many shares can be bought on Monday with Rs 36,00,000 \newline 2. Calculate the selling value on Friday \newline 3. Find the total profit
For Marico: \newline Buy price Monday = 346346
Number of shares = ⌊3600000346⌋=10404\lfloor\frac{3600000}{346}\rfloor = 10404 shares
Sell price Friday = 372372 \newline Total value = 10404×372=387028810404 \times 372 = 3870288 \newline Profit = 3870288−3600000=2702883870288 - 3600000 = 270288
For HUL: \newline Buy price Monday = 19331933
Number of shares = ⌊36000001933⌋=1862\lfloor\frac{3600000}{1933}\rfloor = 1862 shares
Sell price Friday = 19661966 \newline Total value = 1862×1966=36606921862 \times 1966 = 3660692 \newline Profit = 3660692−3600000=606923660692 - 3600000 = 60692
For ITC: \newline Buy price Monday = 238238
Number of shares = ⌊3600000238⌋=15126\lfloor\frac{3600000}{238}\rfloor = 15126 shares
Sell price Friday = 253253 \newline Total value = 15126×253=382687815126 \times 253 = 3826878 \newline Profit = 3826878−3600000=2268783826878 - 3600000 = 226878
For Britannia: \newline Buy price Monday = 30463046
Number of shares = ⌊36000003046⌋=1182\lfloor\frac{3600000}{3046}\rfloor = 1182 shares
Sell price Friday = 31403140 \newline Total value = 1182×3140=37114801182 \times 3140 = 3711480 \newline Profit = 3711480−3600000=1114803711480 - 3600000 = 111480
Comparing profits, Marico gives the maximum profit of Rs 270288270288, therefore Marico is the correct answer.

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