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A summary of two stocks is shown.

\begin{tabular}{|c|l|l|l|l|}
\hline Name of Stock & Symbol & Closing Price Day 1 & Closing Price Day 2 & Closing Price Day 3 \\
\hline Unix Co & UNX & 8.15 & 8.78 & 8.05 \\
\hline Cubix Inc & C8X & 15.65 & 16.92 & 14.35 \\
\hline
\end{tabular}

Suppose you purchase 65 shares of Unix stock and 50 shares of Cubix stock on Day 1 at the closing price. Which day, during the following two days, would be best to sell both stocks on, and by how much?

A. Day 2 is the best by [tex]$\$[/tex] 104.45[tex]$.
B. Day 3 is the best by $[/tex]\[tex]$ 104.45$[/tex].
C. Day 2 is the best by [tex]$\$[/tex] 70.85[tex]$.
D. Day 3 is the best by $[/tex]\[tex]$ 70.85$[/tex].



Answer :

GinnyAnswer
To determine the best day to sell the stocks and to calculate the respective profit, let's go through the steps you would use:

1. Calculate the total cost of the stocks when purchased on Day 1:

- For Unik stock (UNX):
[tex]\[ 65 \text{ shares} \times \$8.15 = \$529.75 \][/tex]

- For Cubar stock (C8X):
[tex]\[ 50 \text{ shares} \times \$15.65 = \$782.50 \][/tex]

- Total cost on Day 1:
[tex]\[ \$529.75 + \$782.50 = \$1312.25 \][/tex]

2. Calculate the total value of the stocks on Day 2:

- For Unik stock (UNX) on Day 2:
[tex]\[ 65 \text{ shares} \times \$8.78 = \$570.70 \][/tex]

- For Cubar stock (C8X) on Day 2:
[tex]\[ 50 \text{ shares} \times \$16.92 = \$846.00 \][/tex]

- Total value on Day 2:
[tex]\[ \$570.70 + \$846.00 = \$1416.70 \][/tex]

3. Calculate the total value of the stocks on Day 3:

- For Unik stock (UNX) on Day 3:
[tex]\[ 65 \text{ shares} \times \$8.05 = \$523.25 \][/tex]

- For Cubar stock (C8X) on Day 3:
[tex]\[ 50 \text{ shares} \times \$14.35 = \$717.50 \][/tex]

- Total value on Day 3:
[tex]\[ \$523.25 + \$717.50 = \$1240.75 \][/tex]

4. Calculate the profit for selling on Day 2 and Day 3:

- Profit on Day 2:
[tex]\[ \$1416.70 - \$1312.25 = \$104.45 \][/tex]

- Profit on Day 3:
[tex]\[ \$1240.75 - \$1312.25 = -\$71.50 \][/tex]

5. Determine which day is the best to sell the stocks:

By comparing the profits:
- Profit on Day 2: \[tex]$104.45 - Profit on Day 3: -\$[/tex]71.50 (a loss)

The best day to sell the stocks is Day 2, with a profit of \[tex]$104.45. Thus, the best option is: Day 2 is the best by \$[/tex]104.45.

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