Stocks and Shares: Formulas, Shortcuts and Solved Examples — MCQs with Answers (Set 2)

The stock is quoted at Rs 119, and brokerage is Rs 0.5 per Rs 100 of face value. When buying, brokerage is added to the market price, since it is a cost to the buyer. Effective price per Rs 100 face value = Rs 119 + Rs 0.5 = Rs 119.5. Here the investor buys Rs 1000 worth of face value. Cash required = (119.5/100) x 1000 = Rs 1195. Check: Rs 1195 divided by 1000, then multiplied by 100, gives back Rs 119.5, the effective buying price.

To compare two stocks, find the annual income earned per rupee invested in each. For the 9% stock at 93, income per rupee = 9/93 = 0.1. For the 13/2% stock at 92, income per rupee = 13/2/92 = 0.07. A higher income per rupee means a better return for the same amount invested. Since 0.1 is the larger figure, the first stock wins. So 9% stock at 93 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 5% stock at 148, income per rupee = 5/148 = 0.03. For the 9% stock at 139, income per rupee = 9/139 = 0.06. A higher income per rupee means a better return for the same amount invested. Since 0.06 is the larger figure, the second stock wins. So 9% stock at 139 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 5% stock at 115, income per rupee = 5/115 = 0.04. For the 15% stock at 122, income per rupee = 15/122 = 0.12. A higher income per rupee means a better return for the same amount invested. Since 0.12 is the larger figure, the second stock wins. So 15% stock at 122 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 4% stock at 137, income per rupee = 4/137 = 0.03. For the 12% stock at 139, income per rupee = 12/139 = 0.09. A higher income per rupee means a better return for the same amount invested. Since 0.09 is the larger figure, the second stock wins. So 12% stock at 139 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 10% stock at 98, income per rupee = 10/98 = 0.1. For the 13/2% stock at 84, income per rupee = 13/2/84 = 0.08. A higher income per rupee means a better return for the same amount invested. Since 0.1 is the larger figure, the first stock wins. So 10% stock at 98 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 13/2% stock at 122, income per rupee = 13/2/122 = 0.05. For the 15% stock at 139, income per rupee = 15/139 = 0.11. A higher income per rupee means a better return for the same amount invested. Since 0.11 is the larger figure, the second stock wins. So 15% stock at 139 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 10% stock at 103, income per rupee = 10/103 = 0.1. For the 15/2% stock at 87, income per rupee = 15/2/87 = 0.09. A higher income per rupee means a better return for the same amount invested. Since 0.1 is the larger figure, the first stock wins. So 10% stock at 103 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 13/2% stock at 74, income per rupee = 13/2/74 = 0.09. For the 12% stock at 116, income per rupee = 12/116 = 0.1. A higher income per rupee means a better return for the same amount invested. Since 0.1 is the larger figure, the second stock wins. So 12% stock at 116 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 13/2% stock at 106, income per rupee = 13/2/106 = 0.06. For the 9% stock at 146, income per rupee = 9/146 = 0.06. A higher income per rupee means a better return for the same amount invested. Since 0.06 is the larger figure, the second stock wins. So 9% stock at 146 is the better investment.

To compare two stocks, find the annual income earned per rupee invested in each. For the 6% stock at 146, income per rupee = 6/146 = 0.04. For the 17/2% stock at 80, income per rupee = 17/2/80 = 0.11. A higher income per rupee means a better return for the same amount invested. Since 0.11 is the larger figure, the second stock wins. So 17/2% stock at 80 is the better investment.

This is a 15% stock quoted at Rs 75. So investing Rs 75 earns an annual income of Rs 15. To compare with other investments, find the income per Rs 100 invested. Rate of interest = (15/75) x 100 = 20%. Check: at 20% return, investing Rs 75 earns (20/100) x 75 = Rs 15, the original dividend.

This is a 12% stock quoted at Rs 120. So investing Rs 120 earns an annual income of Rs 12. To compare with other investments, find the income per Rs 100 invested. Rate of interest = (12/120) x 100 = 10%. Check: at 10% return, investing Rs 120 earns (10/100) x 120 = Rs 12, the original dividend.

This is a 10% stock quoted at Rs 100. So investing Rs 100 earns an annual income of Rs 10. To compare with other investments, find the income per Rs 100 invested. Rate of interest = (10/100) x 100 = 10%. Check: at 10% return, investing Rs 100 earns (10/100) x 100 = Rs 10, the original dividend.

This is a 6% stock quoted at Rs 75. So investing Rs 75 earns an annual income of Rs 6. To compare with other investments, find the income per Rs 100 invested. Rate of interest = (6/75) x 100 = 8%. Check: at 8% return, investing Rs 75 earns (8/100) x 75 = Rs 6, the original dividend.

This is a 13/2% stock quoted at Rs 130. So investing Rs 130 earns an annual income of Rs 13/2. To compare with other investments, find the income per Rs 100 invested. Rate of interest = (13/2/130) x 100 = 5%. Check: at 5% return, investing Rs 130 earns (5/100) x 130 = Rs 13/2, the original dividend.

This is a 5% stock quoted at Rs 125. So investing Rs 125 earns an annual income of Rs 5. To compare with other investments, find the income per Rs 100 invested. Rate of interest = (5/125) x 100 = 4%. Check: at 4% return, investing Rs 125 earns (4/100) x 125 = Rs 5, the original dividend.

Each share has a face value of Rs 10, but it trades at a market price of Rs 13. The total amount invested is Rs 234. Number of shares bought = total investment / market price per share. Number of shares = 234/13 = 18. Check: 18 shares at Rs 13 each cost 18 x 13 = Rs 234, matching the investment.

Each share has a face value of Rs 25, but it trades at a market price of Rs 28. The total amount invested is Rs 2184. Number of shares bought = total investment / market price per share. Number of shares = 2184/28 = 78. Check: 78 shares at Rs 28 each cost 78 x 28 = Rs 2184, matching the investment.

Each share has a face value of Rs 10, but it trades at a market price of Rs 8. The total amount invested is Rs 1096. Number of shares bought = total investment / market price per share. Number of shares = 1096/8 = 137. Check: 137 shares at Rs 8 each cost 137 x 8 = Rs 1096, matching the investment.

Each share has a face value of Rs 100, but it trades at a market price of Rs 89. The total amount invested is Rs 10146. Number of shares bought = total investment / market price per share. Number of shares = 10146/89 = 114. Check: 114 shares at Rs 89 each cost 114 x 89 = Rs 10146, matching the investment.

Each share has a face value of Rs 100, but it trades at a market price of Rs 148. The total amount invested is Rs 22496. Number of shares bought = total investment / market price per share. Number of shares = 22496/148 = 152. Check: 152 shares at Rs 148 each cost 152 x 148 = Rs 22496, matching the investment.

Each share has a face value of Rs 10, but it trades at a market price of Rs 10. The total amount invested is Rs 1360. Number of shares bought = total investment / market price per share. Number of shares = 1360/10 = 136. Check: 136 shares at Rs 10 each cost 136 x 10 = Rs 1360, matching the investment.

Each share has a face value of Rs 100, but it trades at a market price of Rs 120. The total amount invested is Rs 18000. Number of shares bought = total investment / market price per share. Number of shares = 18000/120 = 150. Check: 150 shares at Rs 120 each cost 150 x 120 = Rs 18000, matching the investment.

Each share has a face value of Rs 100, but it trades at a market price of Rs 80. The total amount invested is Rs 2640. Number of shares bought = total investment / market price per share. Number of shares = 2640/80 = 33. Check: 33 shares at Rs 80 each cost 33 x 80 = Rs 2640, matching the investment.