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The table below presents the quoted buy and sell prices of five stocks during…

IPMAT Indore 2020 · Quantitative Ability · 5 questions

The table below presents the quoted buy and sell prices of five stocks during the five trading days of a given week. The quoted sell price is the price at which an investor can sell a stock in the market. The quoted buy price is the price at which an investor can buy a stock from the market. All the quoted numbers are in Indian Rupees. Stock | Monday Sell | Monday Buy | Tuesday Sell | Tuesday Buy | Wednesday Sell | Wednesday Buy | Thursday Sell | Thursday Buy | Friday Sell | Friday Buy Dabur | 460 | 462 | 455 | 458 | 432 | 433 | 444 | 447 | 461 | 462 Marico | 345 | 346 | 335 | 336 | 365 | 368 | 372 | 375 | 372 | 374 HUL | 1931 | 1933 | 1952 | 1955 | 1979 | 1981 | 2044 | 2048 | 1966 | 1969 ITC | 237 | 238 | 238 | 239 | 246 | 251 | 221 | 225 | 253 | 256 Britannia | 3044 | 3046 | 3100 | 3101 | 3110 | 3115 | 3025 | 3027 | 3140 | 3144

Question 1

If an investor had Rs. 36,00,000 to invest in any particular single stock, and she could buy the stock only on Monday and sell it off only on Friday, then the stock she should buy on Monday to earn the maximum possible profit during the week is
  1. A. Marico
  2. B. HUL
  3. C. ITC
  4. D. Britannia

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Question 2

If an investor planned to invest Rs. 36,00,000 in purchasing the stocks of HUL on Monday, sell them off on Wednesday and use the entire proceeds to purchase the stocks of Britannia on the same day and sell them off again on Friday, then the total investment return during the week would be
  1. A. 2.80 percent
  2. B. 3.00 percent
  3. C. 3.20 percent
  4. D. 3.40 percent

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Question 3

The difference between the quoted buy and sell price of a stock is referred to as the spread of the stock. The average spread of the stocks is lowest on
  1. A. Monday
  2. B. Tuesday
  3. C. Thursday
  4. D. Friday

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Question 4

A brokerage firm charges 0.1 percent trading commission on the value of shares bought or sold through its trading platform. If an investor bought 1000 shares of Britannia on Tuesday, and sold all of them on Thursday, then the total brokerage fee that will be charged from the investor is
  1. A. 6,125
  2. B. 6,126
  3. C. 6,127
  4. D. 6,128

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Question 5

If you had decided to invest Rs. 36,00,000 worth of ITC stocks on Monday, then the day of the week you should choose to sell the stocks to earn the maximum possible profit would be
  1. A. Tuesday
  2. B. Wednesday
  3. C. Thursday
  4. D. Friday

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More from this paper: all IPMAT Indore 2020 questions →