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IPMAT Indore 2020

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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

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

Correct Option: 1
For Monday: \newline Dabur: 462−460=2462 - 460 = 2 \newline Marico: 346−345=1346 - 345 = 1 \newline HUL: 1933−1931=21933 - 1931 = 2 \newline ITC: 238−237=1238 - 237 = 1 \newline 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: \newline Dabur: 458−455=3458 - 455 = 3 \newline Marico: 336−335=1336 - 335 = 1 \newline HUL: 1955−1952=31955 - 1952 = 3 \newline ITC: 239−238=1239 - 238 = 1 \newline 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: \newline Dabur: 447−444=3447 - 444 = 3 \newline Marico: 375−372=3375 - 372 = 3 \newline HUL: 2048−2044=42048 - 2044 = 4 \newline ITC: 225−221=4225 - 221 = 4 \newline 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: \newline Dabur: 462−461=1462 - 461 = 1 \newline Marico: 374−372=2374 - 372 = 2 \newline HUL: 1969−1966=31969 - 1966 = 3 \newline ITC: 256−253=3256 - 253 = 3 \newline 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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