Stocks and Shares MCQs for Entry Test with Answers and Explanations [PDF]

A man buys Rs. 25 shares in a company which pays 9% dividend . The money invested is such that it gives 10% on investment. At what price did he buy the shares?

A. Rs.22
B. Rs.22.50
C. Rs.25
D. Rs.22.50

Suppose he buys each share be Rs. X.
Then, (25 x 9/100)=(X x 10/100) X= 22.50

Cost of each share is Rs. 22.50.

Correct Answer: B. Rs.22.50 ✔

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Find the cost of 96 shares of Rs. 10 each at (3/4) discount, brokerage being(1/4) per share.

A. 812
B. 912
C. 1012
D. 1112

Cost of 1 share = Rs. [(10-(3/4)) + (1/4)] = Rs. (19/2).
Cost of 96 shares = Rs. [(19/2)*96] = Rs. 912.

Correct Answer: B. 912 ✔

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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

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.

Correct Answer: B. Rs. 75 ✔

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

A. Rs. 6240
B. Rs.3100
C. Rs.6500
D. Rs.9600

To obtain Rs.10, investment = Rs. 96.
To obtain Rs. 650,

investment= Rs.(96/10 x 650) = Rs. 6240.

Correct Answer: A. Rs. 6240 ✔

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Find the annual income derived by investing Rs. 6800 in 10% stock at 136.

A. 200
B. 300
C. 400
D. 500

By investing Rs. 136, income obtained = Rs. 10.
By investing Rs. 6800, income obtained = Rs. [(10/136)*6800] = Rs. 500.

Correct Answer: D. 500 ✔

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

Option A: 80

Option B: 96

Option C: 106

Option D: 108

Correct Answer: 96 ✔

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Find the annual income derived from Rs. 2500, 8% stock at 106.

A. 100
B. 150
C. 200
D. 250

Income from Rs. 100 stock = Rs. 8.
Income from Rs. 2500 = Rs. [(8/1000*2500) =Rs. 200.

Correct Answer: C. 200 ✔

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A man invests in a 16% stock at 128. The interest obtained by him is:__________?

A. 16%
B. 12.5%
C. 8%
D. 12%

investing Rs. 128, income is = Rs. 16.
investing Rs. 100, income is Rs. (16 *100/128) = 12.5

Correct Answer: B. 12.5% ✔

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Find the cash required to purchase Rs. 3200, 7(1/2) % stock at 107(brokerage (1/2) %).

A. 3440
B. 4440
C. 5440
D. 6440

Cash required to purchase Rs. 100 stock = Rs (107+(1/2)) = Rs. (215/2).
Cash required to purchase Rs. 100 stock = Rs [(215/2)*(1/100)*3200] = Rs. 3440

Correct Answer: A. 3440 ✔

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The cost price of a Rs. 100 stock at 4 discount, when brokerage is 1/4 % is:__________?

A. Rs. 96
B. Rs. 95.75
C. Rs. 96.25
D. Rs. 104.25

C.P.=Rs. 100 – 4 + 1/4 =Rs.96.25.

Correct Answer: C. Rs. 96.25 ✔

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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_________?

A. 3:4
B. 3:5
C. 4:5
D. 16:15

For an income of Re. 1 in 9% stock at 96,investments
= Rs. (96 / 9).

= Rs.(32/3).

For an income of Re.1 in 12% stock at 120,investments

=Rs.(120/12 )

= Rs.10.

Ratio of investments= 32/3:10=32 : 30 = 16:25.

Correct Answer: D. 16:15 ✔

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Find the cost of Rs. 6400, 10% stock at 15 discount.

A. 5440
B. 5480
C. 6440
D. 6480

Cost of Rs. 100 stock = Rs. (100-15)
Cost of Rs. 6400 stock = Rs. (85/100 * 6400 ) = Rs. 5440.

Correct Answer: A. 5440 ✔

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

A. Rs. 10800
B. Rs. 10000
C. Rs. 14400
D. Rs. 16000

For an income of Rs. 12, stock needed = 100
For an income of Rs. 1200, stock needed = 100 * 1200/12 = 10000

Correct Answer: B. Rs. 10000 ✔

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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

For an income of Rs. 8,investments= Rs.100.
For an income of Rs. 6,investments= Rs.(100/8×6)

Market value of Rs.100 stock = Rs.75.

Correct Answer: B. Rs.75 ✔

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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. 12
B. 15
C. 18
D. 20

Dividend on Rs. 20 = Rs. (90/100)x 20 = Rs.9/5.
Rs. 12 is an income on Rs. 100.

Rs.9/5 is an income on Rs.[ (100/12) x (9/5)] = Rs. 15.

Correct Answer: B. 15 ✔

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A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investments, at what price did he buy the shares?

A. Rs.40
B. Rs.37.50
C. Rs.48
D. Rs.52

Dividend on 1 share=Rs.(10/100 x 50)
= Rs. 5

Rs.12.50 is an income on an investments of Rs.100.

Rs.5 is an income on an investments of

Rs.(100×2/25×5)=Rs.40.

Cost of 1 share = Rs.40.

Correct Answer: A. Rs.40 ✔

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A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is__________?

A. 7.5%
B. 8%
C. 9.7%
D. None of these

By investing Rs. 1552, income = Rs. 128.
By investing Rs. 97, income = Rs (128/1552 x 97) = Rs. 8.

Therefore, Dividend = 8%.

Correct Answer: B. 8% ✔

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Masood invests a part of Rs. 12000 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?

A. Rs. 4500
B. Rs. 6000
C. Rs. 5500
D. Rs 4000

Let investment in 12% stock is Rs. x.
investment in 15% stock Rs. (12000 – x).

(12/120) * x + 15/125(12000-x) = 1360

5x + 72000 -6x hence x = 4000

Correct Answer: D. Rs 4000 ✔

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A invested some money in 10% stock at 96. If B wants to invest in an equality good 12% stock, he must purchase a stock worth of__________?

A. Rs.50
B. Rs.105
C. Rs.115.20
D. Rs.125.40

For an income of Rs.10,investments=Rs.96.
For an income of Rs.12,

investments=Rs.(96/10 x 12) =Rs.115.20.

Correct Answer: C. Rs.115.20 ✔

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A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

A. 3600(8%), 4200(9%)
B. 4000(8%), 4200(9%)
C. 3600(8%), 4000(9%)
D. 4000(8%), 4000(9%)

S.P of Rs. 5000 stock = Rs. [(156/100)*5000] = Rs. 7800.
Income from this stock = Rs. [(12/100)*5000] = Rs. 600.

Let investment in * % stock be x and that in 9 % stock = (7800-x).

[x*(8/90)] + (7800-x) * (9/108) = (600+7)

4x/45) + [(7800-x)/12] = 670 ïƒ³ 16x + 117000-15x = (670*180)

x = 3600
Money invested in 8 % stock at 90 = Rs. 3600.

Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.

Correct Answer: A. 3600(8%), 4200(9%) ✔

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A 9% stock yields 8%. The market value of the stock is__________?

A. Rs. 72
B. Rs. 116.50
C. Rs. 90
D. Rs. 112.50

To get Rs. 8, investment = Rs. 100
To get Rs. 9, investment = Rs. 100/8 * 9 = Rs. 112.50.

Market value of Rs. 100 stock = Rs. 112.50.

Correct Answer: D. Rs. 112.50 ✔

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A man invested Rs. 14,400 in Rs.100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year , then how much does he get?

A. Rs. 500
B. Rs. 600
C. Rs. 650
D. Rs. 720

Number of shares= (14400 / 120) =120.
Face value=Rs.(100×120) =Rs.12000.

Annual Income= Rs.(5/100×12000) =Rs. 600.

Correct Answer: B. Rs. 600 ✔

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Find the income derived from 88 shares of Rs. 25 each at 5 premium, brokerage being (1/4) per share and the rate of dividend being 7(1/2) % per annum.

A. 150
B. 165
C. 180
D. 201

Cost of 1 share = Rs. [25+5+1/4)] = Rs. (121/4).
Cost of 88 shares = Rs.[(121/4)*88] = Rs. 2662.

Investment made = Rs. 2662.

Face value of 88 shares = Rs. (88*25) = Rs. 2200.

Dividend on Rs. 100 = (15/2).

Dividend on Rs. 2200 = Rs. [(15/20*(1/100)*2200] = Rs. 165.

Income derived = Rs. 165.

Correct Answer: B. 165 ✔

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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__________?

A. Rs. 4800
B. Rs. 5400
C. Rs. 5000
D. Rs. 5600

Let the investment in 9% stock is x.
investment in 10% stock = (9800 – x)

9/75 * x = 10/80(9800 – x) hence x = 5000

Correct Answer: C. Rs. 5000 ✔

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A man invested Rs. 14,400 in Rs 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get ?

A. Rs. 500
B. Rs. 600
C. Rs. 650
D. Rs. 720

Correct Answer: B. Rs. 600 ✔

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A 9% stock yields 8%. The market value of the stock is__________?

A. Rs. 72
B. Rs. 92
C. Rs. 112.50
D. Rs. 116.50

Correct Answer: C. Rs. 112.50 ✔

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A invested some money in 10% stock at 96. If B wants to invest in an equally good 12% stock, he must purchase a stock worth of__________?

A. Rs. 80
B. Rs. 115.20
C. Rs. 120
D. Rs. 125.40

For an income of Rs. 10, investment = Rs. 96.
For an income of Rs. 12, investment = Rs ( 96/10 X 12 )
= Rs. 115.20

Correct Answer: B. Rs. 115.20 ✔

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How many shares of market value Rs. 25 each can be purchased for Rs. 12750, brokerage being 2% ?

A. 450
B. 500
C. 550
D. 600

C.P. of each share = Rs. (25 + 2% of 25) = Rs. 25.50.
So Number of shares = 12750/25.50 = 500.

Correct Answer: B. 500 ✔

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A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?

A. Rs. 37.50
B. Rs. 40
C. Rs. 48
D. Rs 52

Submitted by: Name

Dividend on 1 share = Rs. ( 10/100 X 50 ) = Rs. 5. Rs. 12.50 is an income on an investment of Rs. 100. Rs. 5 is an income on an investment of Rs, ( 100 X 2/25 X 5 ) = Rs. 40. So Cost of 1 share = Rs. 40.

Correct Answer: B. Rs. 40 ✔

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

A. Rs. 10,000
B. Rs. 10,800
C. Rs. 14,400
D. Rs. 16,000

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

Correct Answer: A. Rs. 10,000 ✔

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

A. Rs. 3100
B. Rs. 6240
C. Rs. 6500
D. Rs. 9600

Correct Answer: B. Rs. 6240 ✔

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A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is__________?

A. 7.50%
B. 8%
C. 9.70%
D. None of these.

By investing Rs. 1552, income = Rs. 128. By investing Rs. 97, income = Rs.( 128/1552 X 97 ) = Rs. 8. So Dividend = 8%

Correct Answer: B. 8% ✔

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Stocks And Shares MCQs