# Stocks and Shares Quiz Set 008

### Question 1

What will be my annual income if I invest Rs. 5600 in a 7% stock at Rs. 112?

A

Rs. 350.

B

Rs. 450.

C

Rs. 250.

D

Rs. 550.

Soln.
Ans: a

The required income is \$7/112\$ × 5600 = Rs. 350.

### Question 2

How much amount should be invested in a 10% stock at Rs. 50 so as to earn a dividend of Rs. 120?

A

Rs. 600.

B

Rs. 700.

C

Rs. 500.

D

Rs. 800.

Soln.
Ans: a

Let the amount be A. Then, dividend = \$10/50\$ × A = 120. Solving, we get A = Rs. 600.

### Question 3

What is the market value of a 5% stock that yields 13%?

A

Rs. \$38{6/13}\$.

B

Rs. \$19{3/13}\$.

C

Rs. \$11{7/13}\$.

D

Rs. \$30{10/13}\$.

Soln.
Ans: a

For an income of Rs. 13, the investment is Rs. 100. So, for an income of Rs. 5 the investment would be Rs. \$100/13\$ × 5 = Rs. \$38{6/13}\$.

### Question 4

How much amount of money do I need to buy Rs. 1700 7% stock at Rs. 120? Take the brokerage to be 2%.

A

Rs. 2074.

B

Rs. 2174.

C

Rs. 1974.

D

Rs. 2274.

Soln.
Ans: a

The amount required to purchase Rs. 100 stock is \$120 + 2\$. So, for buying Rs. 1700 stock, the required cash is Rs. \$(120 + 2)/100\$ × 1700 = Rs. 2074.

### Question 5

What is the market value of a 8% stock that yields 9%?

A

Rs. \$88{8/9}\$.

B

Rs. \$44{4/9}\$.

C

Rs. \$26{2/3}\$.

D

Rs. \$71{1/9}\$.

Soln.
Ans: a

For an income of Rs. 9, the investment is Rs. 100. So, for an income of Rs. 8 the investment would be Rs. \$100/9\$ × 8 = Rs. \$88{8/9}\$. 