Aptitude: Stocks and Shares

1. In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must 9. A man invests some money partly in 9% stock at 96 and partly in 12% stock
make an investment of: at 120. To obtain equal dividends from both, he must invest the money in the
A.Rs. 3100 B. Rs. 6240 ratio:
C. Rs. 6500 D.Rs. 9600 A.3 : 4 B. 3 : 5
C. 4 : 5 D.16 : 15
Answer: Option B
Answer: Option D
To obtain Rs. 10, investment = Rs. 96.
Explanation:
96
To obtain Rs. 650, investment = Rs. x 650 = Rs. 6240. 96 32
10
For an income of Re. 1 in 9% stock at 96, investment = Rs. = Rs.
9 3
2. A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being
120
13 . The rate of interest obtained is: For an income Re. 1 in 12% stock at 120, investment = Rs. = Rs. 10.
12
1 1
A.12 % B. 13 % 32
2 2 Ratio of investments = : 10 = 32 : 30 = 16 : 15.
2 3
C. 15% D.16 % 10. By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is
3
then quoted at:
A.Rs. 80 B. Rs. 96
Answer: Option C C. Rs. 106 D.Rs. 108

Investment = Rs. [20 x (50 - 5)] = Rs. 900. Answer: Option B

Face value = Rs. (50 x 20) = Rs. 1000. Explanation:

27 1000 To earn Rs. 135, investment = Rs. 1620.

Dividend = Rs. x = Rs. 135.
2 100
1620
135
To earn Rs. 8, investment = Rs. x 8 = Rs. 96.
Interest obtained = x 100 = 15% 135
900
%

Market value of Rs. 100 stock = Rs. 96.

3. Which is better investment: 11% stock at 143 or 9 % stock at 117?
A.11% stock at 143
3 11. A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128.
B. 9 % stock at 117
4 The dividend from the stock is:
C. Both are equally good A.7.5% B. 8%
D.Cannot be compared, as the total amount of investment is not given. C. 9.7% D.None of these

Answer: Option B Answer: Option B

Let investment in each case be Rs. (143 x 117). Explanation:

11 By investing Rs. 1552, income = Rs. 128.

Income in 1st case = Rs. x 143 x 117 = Rs. 1287.
143
128
39
nd By investing Rs. 97, income = Rs. x 97 = Rs. 8.
Income in 2 case = Rs. x 143 x 117 = Rs. 1394.25 1552
4 x 117
Clearly, 93% stock at 117 is better.
Dividend = 8%
4. A man buys Rs. 20 shares paying 9% dividend. The man wants to have an
interest of 12% on his money. The market value of each share is:
12. A 12% stock yielding 10% is quoted at:
A.Rs. 12 B. Rs. 15
A.Rs. 83.33 B. Rs. 110
C. Rs. 18 D.Rs. 21
C. Rs. 112 D.Rs. 120

Answer: Option B
Answer: Option D

9 9
Explanation:
Dividend on Rs. 20 = Rs. x 20 = Rs. .
100 5
To earn Rs. 10, money invested = Rs. 100.
Rs. 12 is an income on Rs. 100.
100
To earn Rs. 12, money invested = Rs. x 12 = Rs. 120.
9 100 9 10
Rs. is an income on Rs. x = Rs. 15.
5 12 5

Aptitude: Stocks and Shares Page 1

5. By investing in 16 % stock at 64, one earns Rs. 1500. The investment Market value of Rs. 100 stock = Rs. 120.
made is:
A.Rs. 5640 B. Rs. 5760
C. Rs. 7500 D.Rs. 9600 13. The market value of a 10.5% stock, in which an income of Rs. 756 is

Answer: Option B derived by investing Rs. 9000, brokerage being %, is:

A.Rs. 108.25 B. Rs. 112.20
C. Rs. 124.75 D.Rs. 125.25
50
To earn Rs. , investment = Rs. 64.
3
3 Answer: Option C
To earn Rs. 1500, investment = Rs. 64 x x 1500 = Rs. 5760.
50
Explanation:
6. A 6% stock yields 8%. The market value of the stock is:
A.Rs. 48 B. Rs. 75
For an income of Rs. 756, investment = Rs. 9000.
C. Rs. 96 D.Rs. 133.33

Answer: Option B 21 9000 21

For an income of Rs. , investment = Rs. x = Rs. 125.
2 756 2
For an income of Rs. 8, investment = Rs. 100.
For a Rs. 100 stock, investment = Rs. 125.
100
For an income of Rs. 6, investment = Rs. x 6 = Rs. 75.
8 1
Market value of Rs. 100 stock = Rs. 125 - = Rs. 124.75
4
Market value of Rs. 100 stock = Rs. 75. 14.
1
The cost price of a Rs. 100 stock at 4 discount, when brokerage is %is:
7. A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of 4
dividend be 12%, his annual income is: A.Rs. 95.75 B. Rs. 96
A.Rs. 207.40 B. Rs. 534.60 C. Rs. 96.25 D.Rs. 104.25
C. Rs. 648 D.Rs. 655.60
Answer: Option C
Answer: Option C
Explanation:
4455
Number of shares = = 540. 1
8.25
C.P. = Rs. 100 - 4 + = Rs. 96.25
4

Face value = Rs. (540 x 10) = Rs. 5400. 15. Sakshi invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the
remainder in 15% stock at Rs. 125. If his total dividend per annum is Rs. 1360,
how much does he invest in 12% stock at Rs. 120?
12 A.Rs. 4000 B. Rs. 4500
Annual income = Rs. x 5400 = Rs. 648. C. Rs. 5500 D.Rs. 6000
100
8. Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have
Answer: Option A
equal amount of incomes. The investment in 9% stock is:
A.Rs. 4800 B. Rs. 5000
C. Rs. 5400 D.Rs. 5600 Explanation:

Answer: Option B Let investment in 12% stock be Rs. x.

Let the investment in 9% stock be Rs. x. Then, investment in 15% stock = Rs. (12000 - x).

Then, investment in 10% stock = Rs. (9800 - x). 12 15

x x + x (12000 - x) = 1360.
120 125
x 3
9 10 + (12000 - x) = 1360.
x x = x (9800 - x) 10 25
75 80
3x 9800 - x
=
25 8 5x + 72000 - 6x = 1360 x 50

24x = 9800 x 25 - 25x x = 4000.

49x = 9800 x 25

x = 5000.

Aptitude: Stocks and Shares Page 2