# Stocks and Shares Quiz Set 003

### Question 1

If dividend income after investing Rs. 6000 in a 12% stock is Rs. 600, then what is the value of the stock?

A

Rs. 120.

B

Rs. 130.

C

Rs. 110.

D

Rs. 140.

Soln.
Ans: a

Let the value be Rs. V. The income is \$12/V\$ × 6000 = Rs. 600. Solving, we get V = Rs. 120.

### Question 2

An investor has put x Rs. in 4% stock at Rs. 128, and the remaining, Rs. (1500 - x) in 8% at Rs. 119. If the dividends are equal, what is x?

A

Rs. 1024.

B

Rs. 1124.

C

Rs. 924.

D

Rs. 1224.

Soln.
Ans: a

Dividends are equal, so \${x × 4}/128\$ = \${(1500 - x) × 8}/119\$. Solving, we get x = Rs. 1024.

### Question 3

Mrs. K invests a part of Rs. 39600 in 2% stock at Rs. 120, and the remainder in 5% stock at Rs. 110. If her dividend per annum is Rs. 1040, how much did she invest in 5% stock?

A

Rs. 13200.

B

Rs. 13300.

C

Rs. 13100.

D

Rs. 13400.

Soln.
Ans: a

If she invests x in 5% stock at Rs. 110, then her income from this investment is Rs. \$(x × 5)/110\$. Her income from the 2% stock at Rs. 120 would be \${(39600- x) × 2}/120\$. The sum is Rs. 1040. So \$(x × 5)/110\$ + \${(39600- x) × 2}/120\$ = 1040. Solving for x we get x = Rs. 13200. Please note that if the calculation seems tough in the exam, you can try direct substitution of options one by one.

### Question 4

What will be my annual income if I invest Rs. 5850 in a 11% stock at Rs. 117?

A

Rs. 550.

B

Rs. 650.

C

Rs. 450.

D

Rs. 750.

Soln.
Ans: a

The required income is \$11/117\$ × 5850 = Rs. 550.

### Question 5

What is the market value of a 10% stock that yields 11%?

A

Rs. \$90{10/11}\$.

B

Rs. \$45{5/11}\$.

C

Rs. \$27{3/11}\$.

D

Rs. \$72{8/11}\$.

Soln.
Ans: a

For an income of Rs. 11, the investment is Rs. 100. So, for an income of Rs. 10 the investment would be Rs. \$100/11\$ × 10 = Rs. \$90{10/11}\$. This Blog Post/Article "Stocks and Shares Quiz Set 003" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Updated on 2020-02-07. Published on: 2016-04-28