Quants 23 - Stocks and Shares

Practice Questions:

Question 1:

A 6% stock yields 8%. The market value of the stock is:

For an income of Rs.8, investment, Rs. 100

For an income of Rs.6, investment, Rs. (100/8) * 6 = Rs.75

Market value of Rs. 100 stock = Rs. 75

Question 2:

By investing Rs. 1620 in 8% stock, Ragu earns Rs. 135. The stock is then quoted at:

To earn Rs.135, investment = Rs. 1620

To earn Rs.8, investment = Rs. (1620/135) * 8 = Rs. 96

Market value of Rs. 100 stock = Rs.96

Question 3:

A 12% stock yielding 10% is quoted at:

To earn Rs.10, money invested = Rs. 100

To earn Rs.12, money invested = (100/10) * 12 = Rs.120

Market value of Rs. 100 stock = Rs.120

Question 4:

To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock needed is:

For an income of Rs.12, stock needed = Rs. 100

For an income of Rs.1200, stock needed = Rs. (100/12) * 1200 = Rs.10,000

Question 5:

In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of

To obtain Rs.10, investment = Rs.96

To obtain Rs.650, investment = Rs. (96/10) * 650 = Rs.6240

Time to Think:

A 9% stock yields 8%. The market value of the stock is: