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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. Page-2 section-1

11
A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is:
Discuss
Answer & Solution
Answer: Option B
Solution:
$$\eqalign{ & {\text{By}}\,{\text{investing}}\,{\text{Rs}}{\text{.}}\,{\text{1552,}} \cr & {\text{income}} = Rs.\,128. \cr & {\text{By}}\,{\text{investing}}\,Rs.\,97, \cr & {\text{income}} = Rs.\,\left( {\frac{{128}}{{1552}} \times 97} \right) \cr & = Rs.\,8 \cr & \therefore {\text{Dividend}} = 8\% \cr} $$
12
A 12% stock yielding 10% is quoted at:
Discuss
Answer & Solution
Answer: Option D
Solution:
$$\eqalign{ & {\text{To}}\,{\text{earn}}\,{\text{Rs}}{\text{.}}\,{\text{10,}}\,{\text{money}}\,{\text{invested}} \cr & = Rs.\,100. \cr & {\text{To}}\,{\text{earn}}\,{\text{Rs}}{\text{.}}\,{\text{12,}}\,{\text{money}}\,{\text{invested}} \cr & = Rs.\,\left( {\frac{{100}}{{10}} \times 12} \right) = Rs.\,120 \cr & \therefore {\text{Market}}\,{\text{value}}\,{\text{of}}\,Rs.\,100\,{\text{stocks}} = Rs.\,120 \cr} $$
13
The market value of a 10.5% stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being $$\frac{1}{4}$$%, is:
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{For}}\,{\text{an}}\,{\text{income}}\,{\text{of}}\,Rs.\,756,\,{\text{investment}} \cr & = Rs.\,9000 \cr & {\text{For}}\,{\text{an}}\,{\text{income}}\,{\text{of}}\,Rs.\,\frac{{21}}{2},\,{\text{investment}} \cr & = Rs.\,\left( {\frac{{9000}}{{756}} \times \frac{{21}}{2}} \right) = Rs.\,125 \cr & \therefore {\text{For}}\,{\text{a}}\,Rs.\,100\,{\text{stock,}}\,{\text{investment}}\, = Rs.\,125 \cr & {\text{Market}}\,{\text{value}}\,{\text{of}}\,Rs.\,100\,{\text{stock}} \cr & = Rs.\,\left( {125 - \frac{1}{4}} \right) = Rs.\,124.75 \cr} $$
14
The cost price of a Rs. 100 stock at 4 discount, when brokerage is $$\frac{1}{4}$$% is:
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & C.P. = Rs.\,\left( {100 - 4 + \frac{1}{4}} \right) \cr & = Rs.\,96.25 \cr} $$
15
Sakshi invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the remainder in 15% stock at Rs. 125. If his total dividend per annum is Rs. 1360, how much does he invest in 12% stock at Rs. 120?
Discuss
Answer & Solution
Answer: Option A
Solution:
$$\eqalign{ & {\text{Let}}\,{\text{investment}}\,{\text{in}}\,12\% \,{\text{stock}}\,{\text{be}}\,Rs.x \cr & {\text{Then,}}\,{\text{investment}}\,{\text{in}}\,15\% \,{\text{stock}} \cr & = Rs.\,\left( {12000 - x} \right) \cr & \therefore \frac{{12}}{{120}} \times x + \frac{{15}}{{125}} \times \left( {12000 - x} \right) \cr & = 1360 \cr & \Rightarrow \frac{x}{{10}} + \frac{3}{{25}}\left( {12000 - x} \right) = 1360 \cr & \Rightarrow 5x + 72000 - 6x = 1360 \times 50 \cr & \Rightarrow \,x = 4000 \cr} $$
16
Which is better investment, 12% stock at par with an income tax at the rate of 5 paise per rupee or $$14\frac{2}{7}\% $$  stock at 120 free from income tax ?
Discuss
Answer & Solution
Answer: Option B
Solution:
Let investment in each case = Rs. (100 × 120)
Income from 12% stock
= $$ {\frac{{12}}{{100}} \times 100 \times 120} $$    = Rs. 1440
Net income
= Rs. $$\left( {1440 - \frac{5}{{100}} \times 1440} \right)$$     = Rs. 1368
Income from $$14\frac{2}{7}\ $$% stock
= Rs. $$\left( {\frac{{100}}{{7 \times 20}} \times 100 \times 120} \right)$$     = Rs. 1428.57
Clearly, $$14\frac{2}{7}\ $$% stock is better.
17
The income derived from a Rs. 100, 13% stock at Rs. 105, is -
Discuss
Answer & Solution
Answer: Option C
Solution:
Income on Rs. 100 stock = Rs. 13
18
A retired man sells out Rs. 7500 of a 10% stock at Rs. 105.50 and invests the proceeds in 14% stock at Rs. 124.50. What is the change in income if he pays a service charge of 0.5% of the face value on each transaction ?
Discuss
Answer & Solution
Answer: Option C
Solution:
Number of shares sold = $$\frac{7500}{100}$$   = 75
Proceeds from sale of Rs. 7500 stock
= Rs. [(105.50 - 0.5) × 75]
= Rs. 7875
Number of new shares purchased
$$\eqalign{ & = \left( {\frac{{7875}}{{124.50 + 0.50}}} \right) \cr & = \left( {\frac{{7875}}{{125}}} \right) \cr & = 63 \cr} $$
Original income
= 10% of Rs. 7500
= Rs. 750
New income
= 14% of Rs. 6300
= Rs. $$\left( {\frac{{14}}{{100}} \times 6300} \right)$$  
= Rs. 882
∴ Change in income
= Rs. (882 - 750)
= Rs. 132
19
The cash realised on selling a 14% stock at Rs. 106.25, brokerage being $$\frac{1}{4}$$ %, is-
Discuss
Answer & Solution
Answer: Option B
Solution:
Cash realised = Rs. (106.25 - 0.25) = Rs. 106
20
A person has deposited Rs. 13200 in a bank which pays 14% interest. He withdraws the money and invests in Rs. 100 stock at Rs. 110 which pays a dividend of 15%. How much does he gain or lose ?
Discuss
Answer & Solution
Answer: Option A
Solution:
Income from bank = 14% of Rs. 13200 = Rs. 1848
Number of shares purchased
= Rs. $$\left( {\frac{{13200}}{{110}}} \right)$$
= Rs. 120
Income from stock
= (15% of Rs. 100) × 120
= Rs. (15 × 120)
= Rs. 1800
∴ Loss = Rs. (1848 - 1800)
            = Rs. 48