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Bob and his stocks, from OG free test

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by isisalaska » Sat Feb 10, 2007 2:39 pm
Bob bought 2 shares of stock, which he sold for $96 each. If he had a profit of 20% on teh sale of one of the shares but a loss of 20% on the other, teh sale of both combine had
a) profit $10
b) profit $8
c) loss $8
d)Loss $10
e) Neither

Why is c) and not e)?
Isis Alaska
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Source: — Problem Solving |

by jayhawk2001 » Sat Feb 10, 2007 3:49 pm
The main reason it is not E is because the purchase price is not
the same for both the stocks.

For first stock with purchase price S1:

1.2 * S1 = 96
S1 = 80

So, Profit = 16

For second stock with purchase price S2:

0.8 * S2 = 96
S2 = 120

So, loss = 24

Put together, +16 -20 = -8

Hence C
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by isisalaska » Sat Feb 10, 2007 3:52 pm
You are good jayhawk2001
thanks!
Isis Alaska
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by STEVEN SPIELBERG » Mon Mar 15, 2010 11:19 am
IMOC
I want to win an OSCAR on the GMAT !!!
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