Stocks & Shares Mcqs - Set 2

1)   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_________?

a. 3:4
b. 3:5
c. 4:5
d. 16:15
Answer  Explanation 

ANSWER: 16:15

Explanation:
For an income of Re. 1 in 9% stock at 96,investments
= Rs. (96 / 9).

= Rs.(32/3).

For an income of Re.1 in 12% stock at 120,investments

=Rs.(120/12 )

= Rs.10.

Ratio of investments= 32/3:10=32 : 30 = 16:25.


2)   Find the cost of Rs. 6400, 10% stock at 15 discount.

a. 5440
b. 5480
c. 6440
d. 6480
Answer  Explanation 

ANSWER: 5440

Explanation:
Cost of Rs. 100 stock = Rs. (100-15)
Cost of Rs. 6400 stock = Rs. (85/100 * 6400 ) = Rs. 5440.


3)   To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock needed is:_________?

a. Rs. 10800
b. Rs. 10000
c. Rs. 14400
d. Rs. 16000
Answer  Explanation 

ANSWER: Rs. 10000

Explanation:
For an income of Rs. 12, stock needed = 100
For an income of Rs. 1200, stock needed = 100 * 1200/12 = 10000


4)   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,investments= Rs.100.
For an income of Rs. 6,investments= Rs.(100/8×6)

Market value of Rs.100 stock = Rs.75.


5)   A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:_________?

a. 12
b. 15
c. 18
d. 20
Answer  Explanation 

ANSWER: 15

Explanation:
Dividend on Rs. 20 = Rs. (90/100)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.


6)   A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investments, at what price did he buy the shares?

a. Rs.40
b. Rs.37.50
c. Rs.48
d. Rs.52
Answer  Explanation 

ANSWER: Rs.40

Explanation:
Dividend on 1 share=Rs.(10/100 x 50)
= Rs. 5

Rs.12.50 is an income on an investments of Rs.100.

Rs.5 is an income on an investments of

Rs.(100×2/25×5)=Rs.40.

Cost of 1 share = Rs.40.


7)   A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is__________?

a. 7.5%
b. 8%
c. 9.7%
d. None of these
Answer  Explanation 

ANSWER: 8%

Explanation:
By investing Rs. 1552, income = Rs. 128.
By investing Rs. 97, income = Rs (128/1552 x 97) = Rs. 8.

Therefore, Dividend = 8%.


8)   Masood invests a part of Rs. 12000 in 12% stock at Rs. 120 and the remainder in 15% stock at Rs. 125. If his total dividend per annum is Rs. 1360, how much does he invest in 12% stock at Rs. 120?

a. Rs. 4500
b. Rs. 6000
c. Rs. 5500
d. Rs 4000
Answer  Explanation 

ANSWER: Rs 4000

Explanation:
Let investment in 12% stock is Rs. x.
investment in 15% stock Rs. (12000 – x).

(12/120) * x + 15/125(12000-x) = 1360

5x + 72000 -6x hence x = 4000


9)   A invested some money in 10% stock at 96. If B wants to invest in an equality good 12% stock, he must purchase a stock worth of___________?

a. Rs.50
b. Rs.105
c. Rs.115.20
d. Rs.125.40
Answer  Explanation 

ANSWER: Rs.115.20

Explanation:
For an income of Rs.10,investments=Rs.96.
For an income of Rs.12,

investments=Rs.(96/10 x 12) =Rs.115.20.


10)   A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

a. 3600(8%), 4200(9%)
b. 4000(8%), 4200(9%)
c. 3600(8%), 4000(9%)
d. 4000(8%), 4000(9%)
Answer  Explanation 

ANSWER: 3600(8%), 4200(9%)

Explanation:
S.P of Rs. 5000 stock = Rs. [(156/100)*5000] = Rs. 7800.
Income from this stock = Rs. [(12/100)*5000] = Rs. 600.

Let investment in * % stock be x and that in 9 % stock = (7800-x).

[x*(8/90)] + (7800-x) * (9/108) = (600+7)

4x/45) + [(7800-x)/12] = 670  16x + 117000-15x = (670*180)

x = 3600
Money invested in 8 % stock at 90 = Rs. 3600.

Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.