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Stocks and Shares - Questions and Answers

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11. A 4% stock yields 5%. The market value of the stock is:
A. Rs. 125
B. Rs. 80
C. Rs. 99
D. Rs. 109
Explanation: ANSWER : Rs. 80
12. I want to purchase a 6% stock which must yield 5% on my capital. At what price must I buy the stock?
A. Rs. 111
B. Rs. 101
C. Rs. 83.33
D. Rs. 120
Explanation: ANSWER : Rs. 120
13. The cost price of a Rs. 100 stock at 4 discount, when brokerage (1/4)%, is:
A. Rs. 96
B. Rs. 96+
C. Rs. 96-
D. Rs. 100
Explanation: ANSWER : Rs. 96+
14. A invested some money in 4% stock at 96. Now, B wants to invest in an equally good 5% stock. B must purchase a stock worth of:
A. Rs. 120
B. Rs. 124
C. Rs. 76.80
D. Rs. 80
Explanation: ANSWER : Rs. 120
15. Which is the better stock, 5% at 143 or 3 % at 93?
A. 5% at 143
B. 3 % at 93
C. both are equally good
D. 3 % at 93
Explanation: ANSWER : an invests some money partly in 3% stock at 96 and partly in 4% stock at 120. The get equal dividends from both, he must invest the money in the ratio?