## Stocks and Shares

#### Stocks and Shares

1. Rs. 2780 are invested party in 4% stock at 75 and 5% stock at 80 to have equal amount of incomes. The investment in 5% stock is ?
1. Rs. 1500
2. Rs. 1280
3. Rs. 1434.84
4. Rs. 1640

1. Let the investment in 4% stock be Rs. N.
Then, investment in 5% stock = Rs. (2780 - N)
Income from 4% stock = Rs. (4/75) x N
Income from 5% stock = Rs. [(5/80 x (2780 - N)]
∴ 4N / 75 = (2780 - N) / 16
or N = 1500

##### Correct Option: B

Let the investment in 4% stock be Rs. N.
Then, investment in 5% stock = Rs. (2780 - N)
Income from 4% stock = Rs. (4/75) x N
Income from 5% stock = Rs. [(5/80 x (2780 - N)]
∴ 4N / 75 = (2780 - N) / 16
or N = 1500
So, investment in 5% stock = Rs. (2780 - 1500) = Rs. 1280

1. A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 6% his annual income is ?
1. Rs. 267.30
2. Rs. 327.80
3. Rs. 324
4. Rs. 103.70

1. Number of shares = 4455 / 8.25 = 540
Face value = Rs. (540 x 10) = Rs. 5400
Income = Rs. (6/100) x 5400

##### Correct Option: C

Number of shares = 4455 / 8.25 = 540
Face value = Rs. (540 x 10) = Rs. 5400
Income = Rs. (6/100) x 5400 = Rs. 324

1. A man bought 20 shares of Rs. 50 at 5 discount the rate of dividend being 43/4% The rate of interest obtained is ?
1. 43/4%
2. 31/4%
3. 5.28%
4. 4.95%

1. Face value = Rs. (50 x 20) = Rs. 1000
Dividend = Rs. (1000 x 19) / (4 x 100) = Rs. 95/2
Investment = Rs. (45 x 20) = Rs. 900

##### Correct Option: C

Face value = Rs. (50 x 20) = Rs. 1000
Dividend = Rs. (1000 x 19) / (4 x 100) = Rs. 95/2
Investment = Rs. (45 x 20) = Rs. 900
Rate = Rs. (95 x 100) / (2 x 900) = 5.28%

1. A man buys Rs. 20 shares paying 9% dividend. The man want to have an interest of 12% on his money. The market value of each share must be ?
1. Rs. 12
2. Rs. 15
3. Rs. 18
4. Rs. 21

1. Dividend on Rs. 20 = Rs. 9 / (100 x 20) = Rs. 9/5
Rs. 12 is an income on Rs. 100
∴ Rs. 9/5 is an income on Rs. (100/12) x (9/5)

##### Correct Option: B

Dividend on Rs. 20 = Rs. 9 / (100 x 20) = Rs. 9/5
Rs. 12 is an income on Rs. 100
∴ Rs. 9/5 is an income on Rs. (100/12) x (9/5) = Rs. 15

1. A man invested Rs. 388 in a stock at 97 to obtain and income of Rs. 22. The dividend from the stock is ?
1. 12%
2. 3%
3. 51/2%
4. 22.68%

1. When investment is Rs. 388, income = Rs. 22
When investment is Rs. 97, income = Rs. (22 / 388) x 97 = Rs. 5.50

##### Correct Option: C

When investment is Rs. 388, income = Rs. 22
When investment is Rs. 97, income = Rs. (22 / 388) x 97 = Rs. 5.50
∴ Dividend on Rs. 100 stock = 51/2%