A. No loss or gain
B. Gain of $400
C. Loss of $400
D. Gain of $800
E. Loss of $800

Answer: C

Cost of the profitable stock: x=96/1.2=80,
So, profit from it 96-80=16. Total profit 50*16=800.
Cost of the non-profitable stock: y=96/0.8=120,
So, loss from it 96-120 = -24.
Total loss 50*(-24) =-1200.
Total loss: 800+(-1200) =-400.

Hence, the answer is C.


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