Stocks And Shares MCQs with Explanations

To obtain Rs. 10, investment = Rs. 96. To obtain Rs. 650, $$\eqalign{ & \text{investment} = Rs.\,\left( {\frac{{96}}{{10}} \times 650} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,6240 \cr} $$

$$\eqalign{ & {\text{Investment}} \cr & = Rs.\,\left[ {20 \times \left( {50 - 5} \right)} \right] \cr & = Rs.\,900. \cr & {\text{FaceValue}} \cr & = Rs.\,\left( {50 \times 20} \right) \cr & = Rs.\,1000. \cr & {\text{Dividend}} \cr & = Rs.\,\left( {\frac{{27}}{2} \times \frac{{1000}}{{100}}} \right) \cr & = Rs.\,135. \cr & {\text{Interest}}\,{\text{Obtained}} \cr & = \left( {\frac{{135}}{{900}} \times 100} \right)\% \cr & = 15\% \cr} $$

$$\eqalign{ & {\text{Let}}\,{\text{investment}}\,{\text{in}}\,{\text{each}}\,{\text{case}}\,{\text{be}} \cr & Rs.\,\left( {143 \times 117} \right) \cr & {\text{Income}}\,{\text{in}}\,{{\text{1}}^{{\text{st}}}}\,{\text{case}} \cr & = Rs.\left( {\frac{{11}}{{143}} \times 143 \times 117} \right) \cr & = Rs.\,1287 \cr & {\text{Income}}\,{\text{in}}\,{{\text{2}}^{{\text{nd}}}}\,{\text{case}} \cr & = Rs.\,\left( {\frac{{39}}{{4 \times 117}} \times 143 \times 117} \right) \cr & = Rs.\,1394.25 \cr & {\text{Clearly,}}\,9\frac{3}{4}\% \,{\text{stock}}\,{\text{at}}\,117\,{\text{is}}\,{\text{better}} \cr} $$

$$\eqalign{ & {\text{Dividend}}\,{\text{on}}\,Rs.\,20 \cr & = Rs.\,\left( {\frac{9}{{100}} \times 20} \right) \cr & = Rs.\,\frac{9}{5} \cr & Rs.\,12\,{\text{is}}\,{\text{an}}\,{\text{income}}\,{\text{on}}\,Rs.\,100. \cr & \therefore Rs.\,\frac{9}{5}\,{\text{is}}\,{\text{an}}\,{\text{income}}\,{\text{on}} \cr & = Rs.\,\left( {\frac{{100}}{{12}} \times \frac{9}{5}} \right) \cr & = Rs.\,15 \cr} $$

To earn Rs. $$\frac{{50}}{3},$$ investment = Rs. 64 To earn Rs. 1500, investment = $$\eqalign{ & Rs.\,\left( {64 \times \frac{3}{{50}} \times 1500} \right) \cr & = Rs.\,5760 \cr} $$

For an income of Rs. 8, investment = Rs. 100. For an income of Rs. 6, investment = $$\eqalign{ & Rs.\,\left( {\frac{{100}}{8} \times 6} \right) \cr & = Rs.\,75 \cr} $$ ∴ Market value of Rs. 100 stock = Rs. 75.

$$\eqalign{ & {\text{Number}}\,{\text{of}}\,{\text{shares}} \cr & = {\frac{{4455}}{{8.25}}} \cr & = 540 \cr & {\text{Face}}\,{\text{value}} \cr & = Rs.\,\left( {540 \times 10} \right) \cr & = Rs.\,5400 \cr & {\text{Annual}}\,{\text{income}} \cr & = Rs.\,\left( {\frac{{12}}{{100}} \times 5400} \right) \cr & = Rs.\,648 \cr} $$

$$\eqalign{ & {\text{Let}}\,{\text{the}}\,{\text{ivestment}}\,{\text{in}}\,9\% \,{\text{stock}}\,{\text{be}}\,Rs.\,x \cr & {\text{Then,}}\,{\text{investment}}\,{\text{in}}\,10\% \,{\text{stock}} \cr & = Rs.\,\left( {9800 - x} \right) \cr & \frac{9}{{75}} \times \,x\, = \frac{{10}}{{80}}\, \times \,\left( {9800 - x} \right) \cr & \Rightarrow \frac{{3x}}{{25}} = \frac{{9800 - x}}{8} \cr & \Rightarrow 24x = 9800 \times 25 - 25x \cr & \Rightarrow 49x = 9800 \times 25 \cr & \Rightarrow x = 5000 \cr} $$

For an income of Rs. 1 in 9% stock at 96, investment = $$Rs.\,\left( {\frac{{96}}{9}} \right) = Rs.\,\frac{{32}}{3}$$ For an income Rs. 1 in 12% stock at 120, investment = $$Rs.\,\left( {\frac{{120}}{{12}}} \right) = Rs.\,10$$ ∴ Ratio of investments = $$\frac{{32}}{3}$$ : 10 = 32 : 30 = 16 : 15

To earn Rs. 135, investment = Rs. 1620 To earn Rs. 8, investment = $${\text{Rs}}{\text{.}}\left( {\frac{{1620}}{{135}} \times 8} \right) = {\text{Rs}}{\text{.}}\,96$$ ∴ Market value of Rs. 100 stock = Rs. 96

$$\eqalign{ & {\text{By}}\,{\text{investing}}\,{\text{Rs}}{\text{.}}\,{\text{1552,}} \cr & {\text{income}} = Rs.\,128. \cr & {\text{By}}\,{\text{investing}}\,Rs.\,97, \cr & {\text{income}} = Rs.\,\left( {\frac{{128}}{{1552}} \times 97} \right) \cr & = Rs.\,8 \cr & \therefore {\text{Dividend}} = 8\% \cr} $$

$$\eqalign{ & {\text{To}}\,{\text{earn}}\,{\text{Rs}}{\text{.}}\,{\text{10,}}\,{\text{money}}\,{\text{invested}} \cr & = Rs.\,100. \cr & {\text{To}}\,{\text{earn}}\,{\text{Rs}}{\text{.}}\,{\text{12,}}\,{\text{money}}\,{\text{invested}} \cr & = Rs.\,\left( {\frac{{100}}{{10}} \times 12} \right) = Rs.\,120 \cr & \therefore {\text{Market}}\,{\text{value}}\,{\text{of}}\,Rs.\,100\,{\text{stocks}} = Rs.\,120 \cr} $$

$$\eqalign{ & {\text{For}}\,{\text{an}}\,{\text{income}}\,{\text{of}}\,Rs.\,756,\,{\text{investment}} \cr & = Rs.\,9000 \cr & {\text{For}}\,{\text{an}}\,{\text{income}}\,{\text{of}}\,Rs.\,\frac{{21}}{2},\,{\text{investment}} \cr & = Rs.\,\left( {\frac{{9000}}{{756}} \times \frac{{21}}{2}} \right) = Rs.\,125 \cr & \therefore {\text{For}}\,{\text{a}}\,Rs.\,100\,{\text{stock,}}\,{\text{investment}}\, = Rs.\,125 \cr & {\text{Market}}\,{\text{value}}\,{\text{of}}\,Rs.\,100\,{\text{stock}} \cr & = Rs.\,\left( {125 - \frac{1}{4}} \right) = Rs.\,124.75 \cr} $$

$$\eqalign{ & C.P. = Rs.\,\left( {100 - 4 + \frac{1}{4}} \right) \cr & = Rs.\,96.25 \cr} $$

$$\eqalign{ & {\text{Let}}\,{\text{investment}}\,{\text{in}}\,12\% \,{\text{stock}}\,{\text{be}}\,Rs.x \cr & {\text{Then,}}\,{\text{investment}}\,{\text{in}}\,15\% \,{\text{stock}} \cr & = Rs.\,\left( {12000 - x} \right) \cr & \therefore \frac{{12}}{{120}} \times x + \frac{{15}}{{125}} \times \left( {12000 - x} \right) \cr & = 1360 \cr & \Rightarrow \frac{x}{{10}} + \frac{3}{{25}}\left( {12000 - x} \right) = 1360 \cr & \Rightarrow 5x + 72000 - 6x = 1360 \times 50 \cr & \Rightarrow \,x = 4000 \cr} $$

Let investment in each case = Rs. (100 × 120) Income from 12% stock = $$ {\frac{{12}}{{100}} \times 100 \times 120} $$ = Rs. 1440 Net income = Rs. $$\left( {1440 - \frac{5}{{100}} \times 1440} \right)$$ = Rs. 1368 Income from $$14\frac{2}{7}\ $$% stock = Rs. $$\left( {\frac{{100}}{{7 \times 20}} \times 100 \times 120} \right)$$ = Rs. 1428.57 Clearly, $$14\frac{2}{7}\ $$% stock is better.

Income on Rs. 100 stock = Rs. 13

Number of shares sold = $$\frac{7500}{100}$$ = 75 Proceeds from sale of Rs. 7500 stock = Rs. [(105.50 - 0.5) × 75] = Rs. 7875 Number of new shares purchased $$\eqalign{ & = \left( {\frac{{7875}}{{124.50 + 0.50}}} \right) \cr & = \left( {\frac{{7875}}{{125}}} \right) \cr & = 63 \cr} $$ Original income = 10% of Rs. 7500 = Rs. 750 New income = 14% of Rs. 6300 = Rs. $$\left( {\frac{{14}}{{100}} \times 6300} \right)$$ = Rs. 882 ∴ Change in income = Rs. (882 - 750) = Rs. 132

Cash realised = Rs. (106.25 - 0.25) = Rs. 106

Income from bank = 14% of Rs. 13200 = Rs. 1848 Number of shares purchased = Rs. $$\left( {\frac{{13200}}{{110}}} \right)$$ = Rs. 120 Income from stock = (15% of Rs. 100) × 120 = Rs. (15 × 120) = Rs. 1800 ∴ Loss = Rs. (1848 - 1800) = Rs. 48

Dividend on 1 share = Rs. $$\left( {\frac{{10}}{{100}} \times 50} \right)$$ = Rs. 5 Rs. 12.50 is an income on an investment of Rs. 100 Rs. 5 is an income on an investment of : = Rs. $$\left( {100 \times \frac{2}{{25}} \times 5} \right)$$ = Rs. 40. ∴ Cost of 1 share = Rs. 40

By investing Rs. 128, income derived = Rs. 16 By investing Rs. 100, income derived = Rs. $$\left( {\frac{{16}}{{128}} \times 100} \right)$$ = Rs. 12.5 ∴ Interest obtained = 12.5%

Number of shares = $$\left( {\frac{{14400}}{{120}}} \right)$$ = 120 Face value = Rs. (100 × 120) = Rs. 12000 Annual income = Rs. $$\left( {\frac{5}{{100}} \times 12000} \right)$$ = Rs. 600

Income on each debenture = 15% of Rs. 100 = Rs. 15 Number of debentures required = Rs. $$\left( {\frac{{1500}}{{15}}} \right)$$ = Rs. 100 Cost of each debenture = Rs. (104 + 1% of 104) = (104 + 1.04) = Rs. 105.04 ∴ Total investment = Rs. (105.04 × 100) = Rs. 10504