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Question 26 : 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 Fridav. then the stock she should buy on Monday to earn the maximum possible profit during the week is

1. Marico
2. HUL
3. ITC
4. Britannia

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Explanatory Answer

The investor has Rs. 36,00,000 to invest in a single stock.
Number of stocks bought = \\frac{36,00,000}{Buying Price})
Amount obtained by selling the stock = No. of stocks × Selling Price
\\frac{36,00,000}{Buying Price}) × Selling Price
36,00,000 × \\frac{Selling Price}{Buying Price})

We don't have to compute the profit for every stock. It is enough if we compare the ratio of selling price to buying price of each stock and find out which ratio is maximum.

Day	Monday		Tuesday		Wednesday		Thursday		Friday
Quote	Sell	Buy	Sell	Buy	Sell	Buy	Sell	Buy	Sell	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

Dabur : 461/462 = 0.997
HUL : 1966/1933 = 1.017
Britannia : 3140/3046 = 1.03
Marico : 372/346 = 1.075
ITC : 253/238 = 1.063

As the ratio of selling price to buying price for Marico is highest, maximum profit can be earned from the Marico stock.

The answer is Marico

Choice A is the correct answer.