Let's solve this problem step-by-step to find out the correct difference in overall gain or loss between selling at the current day's high price or low price for stocks A and B.
### Initial Investment
1. Shares and Initial Prices:
- Stock A: 115 shares purchased at \[tex]$90 per share.
- Stock B: 30 shares purchased at \$[/tex]145 per share.
2. Calculating Initial Investment:
- Investment in Stock A: [tex]\( 115 \times 90 = \$10350 \)[/tex]
- Investment in Stock B: [tex]\( 30 \times 145 = \$4350 \)[/tex]
- Total Initial Investment: [tex]\( \$10350 + \$4350 = \$14700 \)[/tex]
### Current Prices
3. Current High and Low Prices:
- Stock A: High = \[tex]$105.19, Low = \$[/tex]103.25
- Stock B: High = \[tex]$145.18, Low = \$[/tex]143.28
### Calculating Returns for High Prices
4. Returns at High Prices:
- Stock A: [tex]\( 115 \times 105.19 = \$12096.85 \)[/tex]
- Stock B: [tex]\( 30 \times 145.18 = \$4355.40 \)[/tex]
- Total Return at High Prices: [tex]\( \$12096.85 + \$4355.40 = \$16452.25 \)[/tex]
### Calculating Returns for Low Prices
5. Returns at Low Prices:
- Stock A: [tex]\( 115 \times 103.25 = \$11873.75 \)[/tex]
- Stock B: [tex]\( 30 \times 143.28 = \$4298.40 \)[/tex]
- Total Return at Low Prices: [tex]\( \$11873.75 + \$4298.40 = \$16172.15 \)[/tex]
### Overall Gain or Loss
6. Gain at High Prices:
- Gain at High Prices: [tex]\( \$16452.25 - \$14700 = \$1752.25 \)[/tex]
7. Loss at Low Prices:
- Loss at Low Prices: [tex]\( \$16172.15 - \$14700 = \$1472.15 \)[/tex]
### Difference in Overall Gain and Loss
Now, we need to determine the difference in the overall gain or loss between selling at the high prices and selling at the low prices.
- Difference: [tex]\( \$16452.25 - \$16172.15 = \$280.10 \)[/tex]
Therefore, the correct answer is:
The difference in overall gain is \[tex]$280.10.
The difference in overall loss is \$[/tex]280.10.
The correct choices are:
- The difference in overall gain is \[tex]$280.10.
- The difference in overall loss is \$[/tex]280.10.
