## Stocks and Shares

#### Stocks and Shares

1. A man invests in a 41/2% stock at 96. The interest obtained by him is ?
1. 4%
2. 4.5%
3. 4.69%
4. 1/2%

1. By investing Rs 96, income derived = Rs. 9/2
By investing Rs. 100, income derived = Rs. (9 x 100) / (2 x 96) = Rs.4.69

##### Correct Option: C

By investing Rs 96, income derived = Rs. 9/2
By investing Rs. 100, income derived = Rs. (9 x 100) / (2 x 96) = Rs.4.69
Interest obtained =4.69%

1. By investing Rs. 1100 in a 51/2% stock one earns Rs. 77. The stock is then quoted at ?
1. Rs. 93
2. Rs. 107
3. Rs. 784/7
4. Rs. 973/4

1. To earn Rs. 77, investment = Rs. 1100
To earn Rs. 11/2, investment = (1100 / 77) x (11/2)

##### Correct Option: C

To earn Rs. 77, investment = Rs. 1100
To earn Rs. 11/2, investment = (1100 / 77) x (11/2) = Rs. 784/7

1. To produce an annual income of Rs. 500 in a 4% stock at 90, the amount of stock needed is ?
1. Rs. 11250
2. Rs. 12500
3. Rs. 18000
4. Rs. 20000

1. For an income of Rs. 4, stock needed = Rs. 100
For an income of Rs. 500, stock needed = Rs. (100 / 4) x 500

##### Correct Option: B

For an income of Rs. 4, stock needed = Rs. 100
For an income of Rs. 500, stock needed = Rs. (100 / 4) x 500 = Rs. 12500

1. A 4% stock yield 5%. The market value of the stock is ?
1. Rs. 125
2. Rs. 80
3. Rs. 99
4. Rs. 109

1. For an income of Rs. 5, investment = Rs. 100
For an income of Rs. 4, investment = Rs. (100/5) x 4

##### Correct Option: B

For an income of Rs. 5, investment = Rs. 100
For an income of Rs. 4, investment = Rs. (100/5) x 4 = Rs. 80

1. By investing a 6% stock at 96 an income of Rs. 100 is obtained by making and investment of ?
1. Rs. 1600
2. Rs. 1504
3. Rs. 1666.66
4. Rs. 5760

1. For an income of Rs. 6, investment = Rs. 96.
For an income of Rs. 100, investment = Rs. (96 / 6) x 100

##### Correct Option: A

For an income of Rs. 6, investment = Rs. 96.
For an income of Rs. 100, investment = Rs. (96 / 6) x 100 = Rs. 1600