stocks and shares aptitude questions

6. A 6% stock yields 8%. The market value of the stock is:
A. Rs. 48 B. Rs. 75
C. Rs. 96 D. Rs. 133.33

Answer: Option B

Explanation:

 

For an income of Rs. 8, investment = Rs. 100.

 

For an income of Rs. 6, investment = Rs. 100 x 6 = Rs. 75.
8

Market value of Rs. 100 stock = Rs. 75.


7. A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:
A. Rs. 207.40 B. Rs. 534.60
C. Rs. 648 D. Rs. 655.60

Answer: Option C

Explanation:

 

 

Number of shares = 4455 = 540.
8.25

Face value = Rs. (540 x 10) = Rs. 5400.

 

Annual income = Rs. 12 x 5400 = Rs. 648.
100

8. Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes. The investment in 9% stock is:
A. Rs. 4800 B. Rs. 5000
C. Rs. 5400 D. Rs. 5600

Answer: Option B

Explanation:

 

Let the investment in 9% stock be Rs. x.

Then, investment in 10% stock = Rs. (9800 – x).

 

9 x x = 10 x (9800 – x)
75 80

 

3x = 9800 – x
25 8

24x = 9800 x 25 – 25x

49x = 9800 x 25

x = 5000.


9. A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:
A. 3 : 4 B. 3 : 5
C. 4 : 5 D. 16 : 15

Answer: Option D

Explanation:

 

 

For an income of Re. 1 in 9% stock at 96, investment = Rs. 96 = Rs. 32
9 3

 

For an income Re. 1 in 12% stock at 120, investment = Rs. 120 = Rs. 10.
12

 

Ratio of investments = 32 : 10 = 32 : 30 = 16 : 15.
3

10. By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at:
A. Rs. 80 B. Rs. 96
C. Rs. 106 D. Rs. 108

Answer: Option B

Explanation:

 

To earn Rs. 135, investment = Rs. 1620.

 

To earn Rs. 8, investment = Rs. 1620 x 8 = Rs. 96.
135

Market value of Rs. 100 stock = Rs. 96.

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