Question
The values of Stock A and Stock B on a particular day are Rs. 50 and Rs. 80, respectively. An investor invests Rs. 100 in Stock A and Rs. 80 in Stock B. He sells all the stocks the next day when the value of Stock A is Rs. 55 and Stock B is Rs. 70. The profit made by the investor is Rs. ________
Official answer and solution
- Official answer
- A
- From
- Official GATE 2026 answer key
Solution
Compute the number of shares bought of each stock, find the total selling value on the next day, and subtract the initial investment.
On day 1, the investor buys units of Stock A and unit of Stock B, for a total cost of . On day 2, the 2 units of Stock A sell for , and the 1 unit of Stock B sells for . Total revenue is , so the net profit is .
Option (A)
Taking only the per-share price change without accounting for the 2 shares of Stock A.
The answer is the one in the official GATE answer key. The solution is this site's own explanation.
Source
- Paper
- GATE 2026 Computer Science and Information Technology - Session 2 (CS2)
- Question
- 4 of 65
- Section
- General Aptitude
Report an error in this question
GATE questions are the work of the organising institutes. This site is independent and is not affiliated with them.