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Commerce · Q870

Financial Management

Graduate and Post Graduate · Commerce · question 870

Q870

An expected final stock price is Rs 45 and an original investment is Rs 25 then an expected capital gain will be

A.
Rs 75.00
B.
-Rs 75.00
C.
-Rs 20.00
D.
Rs 20.00
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Expected capital gain = Expected final stock price - Original investment
= Rs. 45 - Rs. 25 = Rs. 20.00