Question

If the overall profit was Rs.6 per share, then the profit earned per share by selling Reliance share is:

• A. Rs. 5.5
• B. Rs. 4
• C. Rs. 3.5
• D. Rs. 2.25

Answer 1

The correct option is A Rs. 5.5

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 Overall profit =$\frac{x}{y}$ = Rs. 6 per share.

We need to find the profit earned by selling one share of Reliance

i.e. $\frac{\text{profit share earned by selling reliance shares}}{\text{Number of shares of reliance}}$

= $\frac{\frac{32y}{100}}{\frac{35x}{100}}$= Rs.5.46 Hence (a).

Alternately:

Let the number of shares be 100, hence the total profit is Rs. 600

From the chart, the number of shares of Reliance= 35

profit % from Relaince=32% of 600

$\frac{Profit}{Share}$= $\frac{\text{(32\% of 600)}}{35}$ = 5.5