Question
An investor bought 200 shares of
a company at ₹150 each. After a few months, the share price increased by 20%. He sold 60% of his shares at this increased price. A month later, the remaining shares dropped to 90% of the original price, and he sold them all. What is his overall profit or loss percentage?Solution
ATQ,
Initial investment 200 shares × ₹150 = ₹30,000 Selling the first 60% of shares 60% of 200 = 120 shares Price increased 20% → new price = 150 × 1.20 = ₹180 Money received = 120 × 180 = ₹21,600 Selling the remaining 80 shares Remaining 40% = 80 shares Price dropped to 90% of original → 150 × 0.9 = ₹135 Money received = 80 × 135 = ₹10,800 Total money received 21,600 + 10,800 = ₹32,400 Profit/Loss Profit = 32,400 – 30,000 = ₹2,400 Profit % = (2400 / 30000) × 100 = 8% Hence, 8% overall profit
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