# Stocks & Shares Mcqs - Set 1

1)   A man buys Rs. 25 shares in a company which pays 9% dividend . The money invested is such that it gives 10% on investment. At what price did he buy the shares?

a. Rs.22
b. Rs.22.50
c. Rs.25
d. Rs.22.50
 Answer  Explanation ANSWER: Rs.22.50 Explanation: Suppose he buys each share be Rs. X. Then, (25 x 9/100)=(X x 10/100) X= 22.50 Cost of each share is Rs. 22.50.

2)   Find the cost of 96 shares of Rs. 10 each at (3/4) discount, brokerage being(1/4) per share.

a. 812
b. 912
c. 1012
d. 1112
 Answer  Explanation ANSWER: 912 Explanation: Cost of 1 share = Rs. [(10-(3/4)) + (1/4)] = Rs. (19/2). Cost of 96 shares = Rs. [(19/2)*96] = Rs. 912.

3)   A 6% stock yields 8%. The market value of the stock is:___________?

a. Rs. 48
b. Rs. 75
c. Rs. 96
d. Rs. 133.33
 Answer  Explanation ANSWER: Rs. 75 Explanation: For an income of Rs. 8, investment = Rs. 100 For an income of Rs. 6, investment = Rs. 100/8 * 6 = Rs. 75. Market value of Rs. 100 stock = Rs. 75.

4)   In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of___________?

a. Rs. 6240
b. Rs.3100
c. Rs.6500
d. Rs.9600
 Answer  Explanation ANSWER: Rs. 6240 Explanation: To obtain Rs.10, investment = Rs. 96. To obtain Rs. 650, investment= Rs.(96/10 x 650) = Rs. 6240.

5)   Find the annual income derived by investing Rs. 6800 in 10% stock at 136.

a. 200
b. 300
c. 400
d. 500
 Answer  Explanation ANSWER: 500 Explanation: By investing Rs. 136, income obtained = Rs. 10. By investing Rs. 6800, income obtained = Rs. [(10/136)*6800] = Rs. 500.

6)   By investing Rs. 1620 in 8% stock, Maria earns Rs. 135. The stock is then quoted at:_________?

a. 80
b. 96
c. 106
d. 108
 Answer  Explanation ANSWER: 96 Explanation: To earn Rs. 135, investment = Rs. 1620. To earn Rs. 8, investment = Rs. (1620/135) * 8= Rs.96. Market value of Rs. 100 stock = Rs. 96.

7)   Find the annual income derived from Rs. 2500, 8% stock at 106.

a. 100
b. 150
c. 200
d. 250
 Answer  Explanation ANSWER: 200 Explanation: Income from Rs. 100 stock = Rs. 8. Income from Rs. 2500 = Rs. [(8/1000*2500) =Rs. 200.

8)   A man invests in a 16% stock at 128. The interest obtained by him is:____________?

a. 16%
b. 12.5%
c. 8%
d. 12%
 Answer  Explanation ANSWER: 12.5% Explanation: investing Rs. 128, income is = Rs. 16. investing Rs. 100, income is Rs. (16 *100/128) = 12.5

9)   Find the cash required to purchase Rs. 3200, 7(1/2) % stock at 107(brokerage (1/2) %).

a. 3440
b. 4440
c. 5440
d. 6440
 Answer  Explanation ANSWER: 3440 Explanation: Cash required to purchase Rs. 100 stock = Rs (107+(1/2)) = Rs. (215/2). Cash required to purchase Rs. 100 stock = Rs [(215/2)*(1/100)*3200] = Rs. 3440

10)   The cost price of a Rs. 100 stock at 4 discount, when brokerage is 1/4 % is:___________?

a. Rs. 96
b. Rs. 95.75
c. Rs. 96.25
d. Rs. 104.25
 Answer  Explanation ANSWER: Rs. 96.25 Explanation: C.P.=Rs. 100 – 4 + 1/4 =Rs.96.25.