# stocks and shares aptitude questions

1.

In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
A.     Rs. 3100    B.     Rs. 6240
C.     Rs. 6500    D.     Rs. 9600

Explanation:

To obtain Rs. 10, investment = Rs. 96.

To obtain Rs. 650, investment = Rs.         96     x 650         = Rs. 6240.
10

2.

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13. The rate of interest obtained is:
A.
12     1     %
2
B.
13     1     %
2
C.     15%    D.
16     2     %
3

Explanation:

Investment = Rs. [20 x (50 – 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = Rs.         27     x     1000         = Rs. 135.
2     100

Interest obtained =         135     x 100     %     = 15%
900

3.

Which is better investment: 11% stock at 143  or  9% stock at 117?
A.     11% stock at 143
B.
9     3     % stock at 117
4
C.     Both are equally good
D.     Cannot be compared, as the total amount of investment is not given.

Explanation:

Let investment in each case be Rs. (143 x 117).

Income in 1st case = Rs.         11     x 143 x 117         = Rs. 1287.
143

Income in 2nd case = Rs.         39     x 143 x 117         = Rs. 1394.25
4 x 117

Clearly, 9     3     % stock at 117 is better.
4

4.

A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:
A.     Rs. 12    B.     Rs. 15
C.     Rs. 18    D.     Rs. 21

Explanation:

Dividend on Rs. 20 = Rs.         9     x 20         = Rs.     9     .
100     5

Rs. 12 is an income on Rs. 100.

Rs.     9     is an income on Rs.         100     x     9         = Rs. 15.
5     12     5

5.

By investing in 16% stock at 64, one earns Rs. 1500. The investment made is:
A.     Rs. 5640    B.     Rs. 5760
C.     Rs. 7500    D.     Rs. 9600