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. View Hint View Answer Discuss in Forum

    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 invested some money in 4% stock at 96. Now, B wants to invest in an equally goods 5% stock. B must purchase a stock worth of ?









  1. View Hint View Answer Discuss in Forum

    For an income of Rs. 4, investment = Rs. 96
    For an income of Rs. 5, investment = Rs. (96/4) x 5

    Correct Option: A

    For an income of Rs. 4, investment = Rs. 96
    For an income of Rs. 5, investment = Rs. (96/4) x 5 = Rs. 120



  1. I want to purchase a 6% stock which must yield 5% on my capital. At what price must I buy the stock ?









  1. View Hint View Answer Discuss in Forum

    For an income of Rs. 5, investment = Rs. 100
    For an income of Rs. 6, investment = Rs. (100/5) x 6

    Correct Option: D

    For an income of Rs. 5, investment = Rs. 100
    For an income of Rs. 6, investment = Rs. (100/5) x 6 = Rs. 120


  1. Which is the better stock, 5% at 143 or 31/2% at 93 ?









  1. View Hint View Answer Discuss in Forum

    Let investment in each case be Rs. (143 x 93)
    Income from 5% stock = Rs. (5 / 143) x 143 x 93 = Rs. 465
    Income from 31/2% stock = Rs. (3.5 / 93) x 143 x 93 = Rs. 500.50

    Correct Option: B

    Let investment in each case be Rs. (143 x 93)
    Income from 5% stock = Rs. (5 / 143) x 143 x 93 = Rs. 465
    Income from 31/2% stock = Rs. (3.5 / 93) x 143 x 93 = Rs. 500.50
    ∴ 31/2% stock at 93 is better.



  1. A man invest some money party in 3% stock at 96 and party in 4% stock at 120. To get equal dividend from both, he must invest the money in the ratio ?









  1. View Hint View Answer Discuss in Forum

    For an income of Re. 1 in 3% stock, investment = Rs. (96 / 3) = Rs. 32
    For an income of Re. 1. in 4% stock investment = Rs. (120 / 4) = Rs. 30

    Correct Option: A

    For an income of Re. 1 in 3% stock, investment = Rs. (96 / 3) = Rs. 32
    For an income of Re. 1. in 4% stock investment = Rs. (120 / 4) = Rs. 30
    ∴ Ratio of investment = 32 : 30 = 16 : 15