Stock and Shares - Excercise 1

Questions

Directions to solve

1.   A 12% stock yielding 10% is quoted at:

  • Rs. 83.33
  • Rs. 110
  • Rs. 112
  • Rs. 120
4
The Correct answer is :Rs. 120

To earn Rs. 10, money invested = Rs. 100.
To earn Rs. 12, money invested = Rs ${\frac{100}{10}\times12}$ = Rs 120
${\therefore}$ Market value of Rs.100 stock = Rs.120

2.   A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is:

  • 7.50%
  • 8.00%
  • 9.70%
  • None of these
4
The Correct answer is :8.00%

By investing Rs. 1552, income = Rs. 128
By investing Rs. 97, income Rs. ${\frac{128}{1552}\times97}$ =Rs 8
${\therefore}$ Dividend = 8%

3.   By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at:

  • Rs. 80
  • Rs. 96
  • Rs. 106
  • Rs. 108
4
The Correct answer is :Rs. 96

To earn Rs. 135, investment = Rs. 1620
To earn Rs. 8, investment = Rs. ${ \frac{1620}{135}\times8}$ =Rs 96
${\therefore}$ Market value of Rs.100 stock = Rs.96

4.   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:

  • 3:4
  • 3:5
  • 4:5
  • 16:15
4
The Correct answer is :16:15

For an income of Re. 1 in 9% stock at 96, investment = Rs.${\frac{96}{9}}$ =${\frac{32}{3}}$
For an income Re. 1 in 12% stock at 120, investment = Rs.${ \frac{120}{12}}$ =10
Ratio of investments =${\frac{32}{3}}$ :10
=32 :30 =16:15

5.   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:

  • Rs. 207.40
  • Rs. 534.60
  • Rs. 648
  • Rs. 655.60
4
The Correct answer is :Rs. 648

Number of shares = ${\frac{4455}{8.25}}$ = 540
Face value = Rs. (540x10) = 5400
Annual income = Rs.${\frac{12}{100}\times}$5400 = Rs 648

6.   A 6% stock yields 8%. The market value of the stock is:

  • Rs. 48
  • Rs. 75
  • Rs. 96
  • Rs. 133.33
4
The Correct answer is :Rs. 75

For an income of Rs. 8, investment = Rs. 100.
For an income of Rs. 6, investment =Rs ${\frac{100}{8}\times6}$ =Rs 75

7.   In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:

  • Rs. 3100
  • Rs. 6240
  • Rs. 6500
  • Rs. 9600
4
The Correct answer is :Rs. 6240

To obtain Rs. 10, investment = Rs. 96.
To obtain Rs. 650, investment = Rs ${\frac{96}{10}\times650}$= Rs 6240