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Stocks And Shares - Aptitude MCQ Questions and Solutions with Explanations

Stocks And Shares MCQ Questions and answers with easy and logical explanations.Arithmetic Ability provides you all type of quantitative and competitive aptitude mcq questions on Stocks And Shares with easy and logical explanations. Stocks And Shares MCQ is important for exams like Banking exams,IBPS,SCC,CAT,XAT,MAT etc.

1
In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
Discuss
Answer & Solution
Answer: Option B
Solution:
To obtain Rs. 10, investment = Rs. 96.
To obtain Rs. 650,
$$\eqalign{ & \text{investment} = Rs.\,\left( {\frac{{96}}{{10}} \times 650} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,6240 \cr} $$
2
A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being $$13\frac{1}{2}$$. The rate of interest obtained is:
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{Investment}} \cr & = Rs.\,\left[ {20 \times \left( {50 - 5} \right)} \right] \cr & = Rs.\,900. \cr & {\text{FaceValue}} \cr & = Rs.\,\left( {50 \times 20} \right) \cr & = Rs.\,1000. \cr & {\text{Dividend}} \cr & = Rs.\,\left( {\frac{{27}}{2} \times \frac{{1000}}{{100}}} \right) \cr & = Rs.\,135. \cr & {\text{Interest}}\,{\text{Obtained}} \cr & = \left( {\frac{{135}}{{900}} \times 100} \right)\% \cr & = 15\% \cr} $$
3
Which is better investment: 11% stock at 143  or  $$9\frac{3}{4}$$% stock at 117?
Discuss
Answer & Solution
Answer: Option B
Solution:
$$\eqalign{ & {\text{Let}}\,{\text{investment}}\,{\text{in}}\,{\text{each}}\,{\text{case}}\,{\text{be}} \cr & Rs.\,\left( {143 \times 117} \right) \cr & {\text{Income}}\,{\text{in}}\,{{\text{1}}^{{\text{st}}}}\,{\text{case}} \cr & = Rs.\left( {\frac{{11}}{{143}} \times 143 \times 117} \right) \cr & = Rs.\,1287 \cr & {\text{Income}}\,{\text{in}}\,{{\text{2}}^{{\text{nd}}}}\,{\text{case}} \cr & = Rs.\,\left( {\frac{{39}}{{4 \times 117}} \times 143 \times 117} \right) \cr & = Rs.\,1394.25 \cr & {\text{Clearly,}}\,9\frac{3}{4}\% \,{\text{stock}}\,{\text{at}}\,117\,{\text{is}}\,{\text{better}} \cr} $$
4
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:
Discuss
Answer & Solution
Answer: Option B
Solution:
$$\eqalign{ & {\text{Dividend}}\,{\text{on}}\,Rs.\,20 \cr & = Rs.\,\left( {\frac{9}{{100}} \times 20} \right) \cr & = Rs.\,\frac{9}{5} \cr & Rs.\,12\,{\text{is}}\,{\text{an}}\,{\text{income}}\,{\text{on}}\,Rs.\,100. \cr & \therefore Rs.\,\frac{9}{5}\,{\text{is}}\,{\text{an}}\,{\text{income}}\,{\text{on}} \cr & = Rs.\,\left( {\frac{{100}}{{12}} \times \frac{9}{5}} \right) \cr & = Rs.\,15 \cr} $$
5
By investing in $$16\frac{2}{3}$$% stock at 64, one earns Rs. 1500. The investment made is:
Discuss
Answer & Solution
Answer: Option B
Solution:
To earn Rs. $$\frac{{50}}{3},$$ investment = Rs. 64
To earn Rs. 1500,
investment =
$$\eqalign{ & Rs.\,\left( {64 \times \frac{3}{{50}} \times 1500} \right) \cr & = Rs.\,5760 \cr} $$
6
A 6% stock yields 8%. The market value of the stock is:
Discuss
Answer & Solution
Answer: Option B
Solution:
For an income of Rs. 8, investment = Rs. 100.
For an income of Rs. 6,
investment =
$$\eqalign{ & Rs.\,\left( {\frac{{100}}{8} \times 6} \right) \cr & = Rs.\,75 \cr} $$
∴ Market value of Rs. 100 stock = Rs. 75.
7
A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{Number}}\,{\text{of}}\,{\text{shares}} \cr & = {\frac{{4455}}{{8.25}}} \cr & = 540 \cr & {\text{Face}}\,{\text{value}} \cr & = Rs.\,\left( {540 \times 10} \right) \cr & = Rs.\,5400 \cr & {\text{Annual}}\,{\text{income}} \cr & = Rs.\,\left( {\frac{{12}}{{100}} \times 5400} \right) \cr & = Rs.\,648 \cr} $$
8
Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes. The investment in 9% stock is:
Discuss
Answer & Solution
Answer: Option B
Solution:
$$\eqalign{ & {\text{Let}}\,{\text{the}}\,{\text{ivestment}}\,{\text{in}}\,9\% \,{\text{stock}}\,{\text{be}}\,Rs.\,x \cr & {\text{Then,}}\,{\text{investment}}\,{\text{in}}\,10\% \,{\text{stock}} \cr & = Rs.\,\left( {9800 - x} \right) \cr & \frac{9}{{75}} \times \,x\, = \frac{{10}}{{80}}\, \times \,\left( {9800 - x} \right) \cr & \Rightarrow \frac{{3x}}{{25}} = \frac{{9800 - x}}{8} \cr & \Rightarrow 24x = 9800 \times 25 - 25x \cr & \Rightarrow 49x = 9800 \times 25 \cr & \Rightarrow x = 5000 \cr} $$
9
A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:
Discuss
Answer & Solution
Answer: Option D
Solution:
For an income of Rs. 1 in 9% stock at 96, investment =
$$Rs.\,\left( {\frac{{96}}{9}} \right) = Rs.\,\frac{{32}}{3}$$
For an income Rs. 1 in 12% stock at 120, investment =
$$Rs.\,\left( {\frac{{120}}{{12}}} \right) = Rs.\,10$$
∴ Ratio of investments
= $$\frac{{32}}{3}$$ : 10
= 32 : 30
= 16 : 15
10
By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at:
Discuss
Answer & Solution
Answer: Option B
Solution:
To earn Rs. 135, investment = Rs. 1620
To earn Rs. 8,
investment =
$${\text{Rs}}{\text{.}}\left( {\frac{{1620}}{{135}} \times 8} \right) = {\text{Rs}}{\text{.}}\,96$$
∴ Market value of Rs. 100 stock = Rs. 96