# Stocks and Shares Quiz Set 013

### Question 1

If my annual dividend income after investing Rs. 6000 in a stock at Rs. 120 is Rs. 250, then what % divided is paid by the company?

A

5%.

B

6%.

C

4%.

D

7%.

Soln.
Ans: a

Let the dividend be p%. The income is \$p/120\$ × 6000 = Rs. 250. Solving, we get p = 5%.

### Question 2

If my annual dividend income after investing Rs. 5950 in a stock at Rs. 119 is Rs. 350, then what % divided is paid by the company?

A

7%.

B

8%.

C

6%.

D

9%.

Soln.
Ans: a

Let the dividend be p%. The income is \$p/119\$ × 5950 = Rs. 350. Solving, we get p = 7%.

### Question 3

An amount of Rs. 3087 is invested in 5% stock. The investor earns Rs. 147. What is the market value of the stock?

A

Rs. 105.

B

Rs. 205.

C

Rs. 155.

D

Rs. 305.

Soln.
Ans: a

Rs. 147 is earned when Rs. 3087 is invested. So, Rs. 5 will be earned if the investment is \$3087/147\$ × 5 = Rs. 105.

### Question 4

Which stock investment option is better: 2% at Rs. 129 or 9% at Rs. 125?

A

9% is better.

B

2% is better.

C

Both are same.

D

Can't be decided.

Soln.
Ans: a

Let the amount invested be Rs. 129 × 125. Return on the first investment is \$2/129\$ × 129 × 125 = Rs. 250. Return on the second investment is \$9/125\$ × 129 × 125 = Rs. 1161. So 9% is better.

### Question 5

How much amount of money do I need to buy Rs. 1700 14% stock at Rs. 115? Take the brokerage to be 2%.

A

Rs. 1989.

B

Rs. 2089.

C

Rs. 1889.

D

Rs. 2189.

Soln.
Ans: a

The amount required to purchase Rs. 100 stock is \$115 + 2\$. So, for buying Rs. 1700 stock, the required cash is Rs. \$(115 + 2)/100\$ × 1700 = Rs. 1989. 