Question

If Ramesh wants to earn equal profit by selling shares of NTPC and Unitech, how much more shares of NTPC than Unitech should be sold?

• A. 40%
• B. 52%
• C. 67%
• D. 34%

Answer 1

The correct option is C 67%

Let the total number of shares for the month of August 2007 be x and the total profit earned in that month be Rs. Y.

the difference in profit is $\frac{25y-15y}{100}$= Rs.$\frac{10y}{100}$

Selling 20x/100 shares of Unitech earned a profit of Rs. $\frac{10y}{100}$

Selling 10x/100 shares of NTPC earned a profit of Rs.$\frac{15y}{100}$

To earned a profit of Rs. $\frac{10y}{100}$, he should have sold $\left(\frac{10y}{15y}\right)$ $\times$ $\left(\frac{10x}{100}\right)$ = $\frac{x}{15}$ more NTPC shares.

So required percentage $\left(\frac{1}{15}\right)$ $\times$ $\frac{\frac{100}{10}}{100}$ = $\frac{1000}{15}$ = 66.67%. hence (C)

Alternately:

we can take numbers to calculate: taking data from the first question of this caselet. we have a total of 100 shares and a total profit of Rs. 600.

For NTPC: number of shares=10, profit earned=90

For Unitech: Number of shares=20 , Profit earned=150.

By selling NTPC shares we have to earn Rs.150, then No. of shares sold should be16.66. i.e an increase of 66.66% over 10 shares initially.