# Stocks and Shares Quiz Set 016

### Question 1

How many shares of market value of Rs. 1100 per share can be purchased for Rs. 346500, if the brokerage is 5%?

A

Rs. 300.

B

Rs. 310.

C

Rs. 290.

D

Rs. 320.

Soln.
Ans: a

Each share will cost 1100 + \$(5 × 1100)/100\$ = Rs. 1155. So total shares = 346500/1155 = 300.

### Question 2

Mr. X invests Rs. 13000 in 15% stock at Rs. 150. How much will he earn?

A

Rs. 1300.

B

Rs. 1400.

C

Rs. 1200.

D

Rs. 1500.

Soln.
Ans: a

His earning = \$15/150\$ × 13000 = Rs. 1300.

### Question 3

Mrs. K invests a part of Rs. 50400 in 6% stock at Rs. 140, and the remainder in 2% stock at Rs. 120. If her dividend per annum is Rs. 1720, how much did she invest in 2% stock?

A

Rs. 16800.

B

Rs. 16900.

C

Rs. 16700.

D

Rs. 17000.

Soln.
Ans: a

If she invests x in 2% stock at Rs. 120, then her income from this investment is Rs. \$(x × 2)/120\$. Her income from the 6% stock at Rs. 140 would be \${(50400- x) × 6}/140\$. The sum is Rs. 1720. So \$(x × 2)/120\$ + \${(50400- x) × 6}/140\$ = 1720. Solving for x we get x = Rs. 16800. Please note that if the calculation seems tough in the exam, you can try direct substitution of options one by one.

### Question 4

Rs. R1 are invested in 9% stock at Rs. 150, and R2 is invested in 27% stock at Rs. 90. If the dividends are equal then the ratio of R1 and R2 is?

A

5:1.

B

6:1.

C

5:2.

D

8:6.

Soln.
Ans: a

Return from investing R1 is \$9/150\$ × R1. If it equals return from R2, \$9/150\$ × R1 = \$27/90\$ × R2. So, R1/R2 = \$27/90\$ × \$150/9\$ = 5:1.

### Question 5

What is the market value of a 9% stock that yields 14%?

A

Rs. \$64{2/7}\$.

B

Rs. \$32{1/7}\$.

C

Rs. \$19{2/7}\$.

D

Rs. \$51{3/7}\$.

Soln.
Ans: a

For an income of Rs. 14, the investment is Rs. 100. So, for an income of Rs. 9 the investment would be Rs. \$100/14\$ × 9 = Rs. \$64{2/7}\$. 