Question
A trader buys a stock at an
average price of Rs. 240 per share. He sells one-third of his shares at a 10% profit and the remaining at a 20% profit. What is his overall percentage profit?Solution
ATQ,
Let total shares = 3 (easy to calculate). Cost price = 3 Γ 240 = 720. First 1 share sold at 10% profit: Selling price = 240 Γ 1.10 = 264 Remaining 2 shares sold at 20% profit: Selling price per share = 240 Γ 1.20 = 288 Total = 2 Γ 288 = 576 Total selling price = 264 + 576 = 840 Overall profit = 840 β 720 = 120 Percentage profit = (120 / 720) Γ 100 = 16.67%
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