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A 12% stock yielding 10% is quoted at:
Answer & Solution
Correct Answer:
Option
D
$$\eqalign{
& {\text{To}}\,{\text{earn}}\,{\text{Rs}}{\text{.}}\,{\text{10,}}\,{\text{money}}\,{\text{invested}} \cr
& = Rs.\,100. \cr
& {\text{To}}\,{\text{earn}}\,{\text{Rs}}{\text{.}}\,{\text{12,}}\,{\text{money}}\,{\text{invested}} \cr
& = Rs.\,\left( {\frac{{100}}{{10}} \times 12} \right) = Rs.\,120 \cr
& \therefore {\text{Market}}\,{\text{value}}\,{\text{of}}\,Rs.\,100\,{\text{stocks}} = Rs.\,120 \cr} $$
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