Aptitude - Stocks and Shares - Discussion

Rate of return = (dividend/investment) * 100.

1st case:

11 = (d1/143) * 100,
d1 = Rs. 15.73.

2nd case:

(39/4) = (d2/117) * 100,
d2 = Rs. 11.4075.

Answer : option A. Because dividend (d1) > dividend (d2).

There is the only thing which is creating a problem, that is face value.

What is the Face value? If not given take it as 100 always.

Here or anywhere if it is written 11% stock at 143 it means 11 Rupee's you will gain by investing 143 Rupees.

For this question.

If we put 143 we get 11 rupees.
So if we put 1 rupee we get 11/143.

And, in another case.

If we put 117 Rs we get 39/4 rupees.
So for 1 rupee we get (39/4) * (1/117).
11/143 < (39/4) * (1/117).

For making calculation simple, instead of 1 rupee they compared it for 143 * 117 rupees, as it will cancel some value.

Answer.

143/11 = 13.
117/9 = 13.

Both are equal and good.

I can't understand completely, so please explain in a easy way.

117 & 143 are multiplied only as an assumption.

I can't understand why two investment 117 and 143 are multiplied when the actual question is what is the best investment. No mention that investor have to invest these two both at a time on question.

This is how it is:

You need to find the value of profit for both the cases, therefore.

Make the values 100 to make it easier.

1. For 11% stock/share at 143,

143 Rs : 11 Rs : 100 Rs : x Rs.

143x = 1100.

So, x = 7.692 which is the profit on 1st case.

2. For 9.75% stock/share at 117,

117 Rs : 9.75 Rs :: 100 Rs : x Rs.

So, 117x = 975.

Therefore, x = 8.333 which is the profit in 2nd case.

8.333>7.692, therefore best investment would be 2nd.

Without knowing face value, how can the comparisons be made?

11% Means in the real world 11/100 not 11/143.
11% on 143 is 15.73.
9.75% or 9 3/4 % on 117 means 11.40.

If you invest 143 you get 15.73 143 ===> 15.73.
If you invest 117 you get 11.40 117 ===> 11.40.

Please clarify how could you determinate 11% = 11 for 143?

@Mr. Vikas don't care about the problem in reality way try to understand the given problem.

Its clear that 11% stock is once with of 117 and once with 143 so its simply multiply by those two and compare that two answers ok na. Did you get it.