Question Details

Stocks A, B and C are priced at rupees 120, 90 and 150 per share, respectively. A trader holds a portfolio consisting of 10 shares of stock A, and 20 shares of stocks B and C put together. If the total value of her portfolio is rupees 3300, then the number of shares of stock B that she holds, is

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Correct Answer :

15

Solution :

The correct answer is 15.

Let the number of shares of stock A, B, and C be denoted as nA, nB, and nC respectively. We are given the following prices per share:

Price of A = 120

Price of B = 90

Price of C = 150

We are told that the trader holds 10 shares of stock A. Therefore, the total value of the shares of stock A in the portfolio is:

10 × 120 = 1200

The total value of the entire portfolio is given as 3300. This means the combined value of the shares of stock B and C must be the total portfolio value minus the value of the shares of stock A:

3300 - 1200 = 2100

We are also given that the total number of shares of stock B and stock C put together is 20. Thus, we can write an equation for the number of shares of stock C in terms of the number of shares of stock B:

nB + nC = 20

nC = 20 - nB

Now we can set up an equation for the combined value of stocks B and C. The value is the number of shares of stock B times its price plus the number of shares of stock C times its price:

90 nB + 150 nC = 2100

Substitute our expression for nC into this equation:

90 nB + 150 ( 20 - nB ) = 2100

Expand the expression on the left side:

90 nB + 3000 - 150 nB = 2100

Combine the nB terms together:

3000 - 60 nB = 2100

Subtract 3000 from both sides:

- 60 nB = 2100 - 3000

- 60 nB = - 900

Divide both sides by -60 to solve for the number of shares of stock B:

nB = -900 -60

nB = 15

Therefore, the number of shares of stock B that she holds is 15.

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