# Stocks and Shares Quiz Set 009

### Question 1

Rs. R1 are invested in 3% stock at Rs. 100, and R2 is invested in 9% stock at Rs. 90. If the dividends are equal then the ratio of R1 and R2 is?

A

10:3.

B

11:3.

C

10:4.

D

13:8.

Soln.
Ans: a

Return from investing R1 is \$3/100\$ × R1. If it equals return from R2, \$3/100\$ × R1 = \$9/90\$ × R2. So, R1/R2 = \$9/90\$ × \$100/3\$ = 10:3.

### Question 2

Mr. M buys Rs. 40(face value) shares paying 10% dividend. If his investment is getting him an interest of Rs. 5%, what is the market value of the share?

A

80.

B

90.

C

95.

D

100.

Soln.
Ans: a

Dividend on share of Rs. 40 is \$10/100\$ × 40.
Rs. 5 is earned on an investment of Rs. 100.
So the dividend \$10/100\$ × 40 is earned on \$100/5\$ × \$10/100\$ × 40 = Rs. 80.

### Question 3

How much amount should be invested in a 5% stock at Rs. 70 so as to earn a dividend of Rs. 60?

A

Rs. 840.

B

Rs. 940.

C

Rs. 740.

D

Rs. 1040.

Soln.
Ans: a

Let the amount be A. Then, dividend = \$5/70\$ × A = 60. Solving, we get A = Rs. 840.

### Question 4

Mr. Q invests earns Rs. 1200 by investing in 8% stock at Rs. 80. How much has he invested?

A

Rs. 12000.

B

Rs. 12100.

C

Rs. 11900.

D

Rs. 12200.

Soln.
Ans: a

His investment = \${80 × 1200}/8\$ = Rs. 12000.

### Question 5

An amount of Rs. 2244 is invested in 5% stock. The investor earns Rs. 187. What is the market value of the stock?

A

Rs. 60.

B

Rs. 160.

C

Rs. 110.

D

Rs. 260.

Soln.
Ans: a

Rs. 187 is earned when Rs. 2244 is invested. So, Rs. 5 will be earned if the investment is \$2244/187\$ × 5 = Rs. 60. 