Stocks and Shares Aptitude Solved Problems and Answers

1. What is annual income derived from Rs. 1800, 5% Stock at 104?
A. 90
B. 85
C. 89
D. 80
Answer: A

Explanation:

Income from Rs. 100 stocks = Rs. 5
Income from Rs. 1800 stock = Rs. (5/100 x 1800)
                                            = Rs. 90.

2. A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:
A. Rs. 12
B. Rs. 15
C. Rs. 18
D. Rs. 21
Answer: B

Explanation:

Dividend on Rs. 20 = (9/100x 20) = Rs. 9/5
i's 12 is an income on Rs. 100.
 Rs. 9/5 is an income on Rs.( 100/12 x 9/5 ) = Rs. 15.

3. A 6% stock yields 8%. The market value of the stock is:
A. Rs. 48
B. Rs. 75
C. Rs. 96
D. Rs. 133.33
Answer: B

Explanation:

For an income of Rs. 8, investment = Rs. 100.
For an income of Rs. 6, investment = Rs.(100/8 x 6) = Rs. 75.
Market value of Rs. 100 stock = Rs. 75.

4. By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at:
A. Rs. 80
B. Rs. 96
C. Rs. 106
D. Rs. 108
Answer: B

Explanation:

To earn Rs. 135, investment = Rs. 1620.
To earn Rs. 8, investment = Rs.(1620/135 x 8 ) = Rs. 96.
Market value of Rs. 100 stock = Rs. 96.

5. A Man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 6%, his annual income is:
A. 267.30
B. 327.80
C. 324
D. 130.70
Answer: C

Explanation:

Number of shares = 4455/8.25 = 5400
Face value = (540 x 100) = 5400
Income = ( 6/100 x 5400) = 324