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. ________

Choose one option
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 10050=2\frac{100}{50} = 2 units of Stock A and 8080=1\frac{80}{80} = 1 unit of Stock B, for a total cost of Rs. 180\text{Rs. } 180. On day 2, the 2 units of Stock A sell for 2×55=Rs. 1102 \times 55 = \text{Rs. } 110, and the 1 unit of Stock B sells for 1×70=Rs. 701 \times 70 = \text{Rs. } 70. Total revenue is 110+70=Rs. 180110 + 70 = \text{Rs. } 180, so the net profit is 180−180=Rs. 0180 - 180 = \text{Rs. } 0.

Final answer

Option (A)

Common trap

Taking only the per-share price change (+5−10=−5)(+5 - 10 = -5) 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

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