# Stocks and Shares Quiz Set 001

### Question 1

Mr. P buys Rs. 312 shares which pay 10% dividend. If he gets 13% on his investment, at what price did he buy the shares?

A

Rs. 240.

B

Rs. 250.

C

Rs. 230.

D

Rs. 260.

Soln.
Ans: a

Income on 1 share = \$10/100\$ × 312 = \$3120/100\$. Rs. 13 is an income on investment of Rs. 100. So, Rs. \$3120/100\$ will be earned on an investment of Rs. \$100/13\$ × \$3120/100\$ = Rs. 240.

### Question 2

Rs. R1 are invested in 3% stock at Rs. 90, and R2 is invested in 6% stock at Rs. 75. If the dividends are equal then the ratio of R1 and R2 is?

A

12:5.

B

13:5.

C

12:6.

D

15:10.

Soln.
Ans: a

Return from investing R1 is \$3/90\$ × R1. If it equals return from R2, \$3/90\$ × R1 = \$6/75\$ × R2. So, R1/R2 = \$6/75\$ × \$90/3\$ = 12:5.

### Question 3

Rs. 21600 is invested in Rs. 14 shares having a market rate of Rs. 24. If the dividend on the shares is 11%, what is the total income?

A

Rs. 1386.

B

Rs. 1486.

C

Rs. 1286.

D

Rs. 1586.

Soln.
Ans: a

The total number of shares is 21600/24 = 900. Return for 1 share is \$11/100\$ × 14. Return for 900 shares = \$11/100\$ × 14 × 900 = Rs. 1386.

### Question 4

What will be my annual income if I invest Rs. 6300 in a 14% stock at Rs. 126?

A

Rs. 700.

B

Rs. 800.

C

Rs. 600.

D

Rs. 900.

Soln.
Ans: a

The required income is \$14/126\$ × 6300 = Rs. 700.

### Question 5

An investor buys Rs. 80 shares in a company that pays 4% dividend. If his investment is such that it is getting him an interest of Rs. 2%, for how much did he buy each share?

A

Rs. 160.

B

Rs. 170.

C

Rs. 175.

D

Rs. 180.

Soln.
Ans: a

If he bought each share at Rs. x, then his income is \$2/100\$ × x = 80 × \$4/100\$, solving, we get x = Rs. 160.