Aptitude - Stocks and Shares - Discussion
Discussion Forum : Stocks and Shares - General Questions (Q.No. 3)
3.
Which is better investment: 11% stock at 143 or 9
% stock at 117?
% stock at 117?
Answer: Option
Explanation:
Let investment in each case be Rs. (143 x 117).
| Income in 1st case = Rs. |  |
11 | x 143 x 117 |  |
= Rs. 1287. |
| 143 |
| Income in 2nd case = Rs. | |
39 | x 143 x 117 | |
= Rs. 1394.25 |
| 4 x 117 |
| Clearly, 9 | 3 | % stock at 117 is better. |
| 4 |
Discussion:
27 comments Page 2 of 3.
Vinay shankar said:
10 years ago
@ALL.
I think the term percent is misleading here.
As percent simply means out of hundred. So in my view, 13% means 13 out of 100 and it is solved for 13 out of 143.
I think the term percent is misleading here.
As percent simply means out of hundred. So in my view, 13% means 13 out of 100 and it is solved for 13 out of 143.
(1)
Ebenezar said:
1 decade ago
I can't understand completely, so please explain in a easy way.
Anirudh said:
4 years ago
They have assumed that the face value of both stocks is Rs 100. One more assumption is that only one share has been bought.
Akash said:
5 years ago
We need to assume that face value for both investment is same.
Kapil Kumar said:
1 decade ago
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).
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).
Samuel said:
1 decade ago
Answer.
143/11 = 13.
117/9 = 13.
Both are equal and good.
143/11 = 13.
117/9 = 13.
Both are equal and good.
Nagarajan. M said:
2 decades ago
Completely i cant understand. Why 11% of stock is being multiplied with 117 why not with 143?
Aashi said:
1 decade ago
117 & 143 are multiplied only as an assumption.
Manan said:
1 decade ago
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.
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.
Pulkit said:
1 decade ago
Without knowing face value, how can the comparisons be made?
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