# Stocks and Shares Quiz Set 018

### Question 1

How much amount should be invested in a 11% stock at Rs. 20 so as to earn a dividend of Rs. 121?

A

Rs. 220.

B

Rs. 320.

C

Rs. 120.

D

Rs. 420.

Soln.
Ans: a

Let the amount be A. Then, dividend = \$11/20\$ × A = 121. Solving, we get A = Rs. 220.

### Question 2

How many shares of market value of Rs. 1700 per share can be purchased for Rs. 2320500, if the brokerage is 5%?

A

Rs. 1300.

B

Rs. 1310.

C

Rs. 1290.

D

Rs. 1320.

Soln.
Ans: a

Each share will cost 1700 + \$(5 × 1700)/100\$ = Rs. 1785. So total shares = 2320500/1785 = 1300.

### Question 3

An amount of Rs. 3474 is invested in 10% stock. The investor earns Rs. 193. What is the market value of the stock?

A

Rs. 180.

B

Rs. 280.

C

Rs. 230.

D

Rs. 380.

Soln.
Ans: a

Rs. 193 is earned when Rs. 3474 is invested. So, Rs. 10 will be earned if the investment is \$3474/193\$ × 10 = Rs. 180.

### Question 4

An amount of Rs. 2784 is invested in a stock with market value of Rs. 336. The investor earns Rs. 116. What is the dividend(%) of the stock?

A

14%.

B

16%.

C

17%.

D

19%.

Soln.
Ans: a

If investment is Rs. 2784 the earning is Rs. 116. So, if the investment is Rs. 336 the earning should be \$116/2784\$ × 336 = 14%.

### Question 5

Which stock investment option is better: 2% at Rs. 128 or 5% at Rs. 111?

A

5% is better.

B

2% is better.

C

Both are same.

D

Can't be decided.

Soln.
Ans: a

Let the amount invested be Rs. 128 × 111. Return on the first investment is \$2/128\$ × 128 × 111 = Rs. 222. Return on the second investment is \$5/111\$ × 128 × 111 = Rs. 640. So 5% is better. 