Multiple choice

Mr. Grey bought 4,500 shares of ABC company at the rate of \$14 each. He sold 3,000 shares at a cost of \$18 each, and then after one week, the price of the share decreased by one-third of its value and he sold the remaining shares. Find the profit or loss made by Mr. Grey in the entire transaction considering brokerage charged is negligible.

  1. $4,500
  2. $6,000
  3. $9,000
  4. $10,000
  5. $12,000
Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

The total cost for 4500 shares is 4500 * 14 = $63000. Mr. Grey earned 3000 * 18 = $54000 from the first sale. The price dropped by a third to \$12, so he earned 1500 * 12 = \$18000 from the remaining shares. His total revenue is 54000 + 18000 = \$72000, resulting in a total profit of 72000 - 63000 = \$9000.

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