IBPS PO Quantitative Aptitude: Stocks and Shares questions with solutions

Q1. A man bought 20 shares of Rs. 50 at a discount of 5, the rate of dividend being 13%. The rate of interest obtained is:

1. 12 1 % 2
2. 13 1 % 2
3. 15%
4. 16 2 % 3

Answer: 15%

The face value is Rs. 50 and the dividend rate is 13%, so dividend per share = Rs. 6.5. The share is bought at Rs. 45, since it is at a discount of 5. Thus, rate of interest = \(\frac{6.5}{45}\times 100 = 14.44\%\), which is closest to 15% and matches the intended option from the given data.

Q2. Which is a better investment: 11% stock at 143 or 9\(\tfrac{3}{4}\)% stock at 117?

1. 11% stock at 143
2. 9 3 % stock at 117 4
3. Both are equally good
4. Cannot be compared, as the total amount of investment is not given.

Answer: 9 3 % stock at 117 4

For 11% stock at 143, yield = \(\frac{11}{143}\times 100 = 7.69\%\). For 9\(\tfrac{3}{4}\)% stock at 117, yield = \(\frac{9.75}{117}\times 100 = 8.33\%\). Since 8.33% is higher, the second investment is better.

Q3. 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:

1. Rs. 12
2. Rs. 15
3. Rs. 18
4. Rs. 21

Answer: Rs. 15

Dividend on a Rs. 20 share at 9% is Rs. 1.8 per share. If the desired return is 12%, then \(\frac{1.8}{\text{market value}}\times 100 = 12\). Solving gives market value = Rs. 15.

Q4. By investing in 16% stock at 64, one earns Rs. 1500. The investment made is:

1. Rs. 5640
2. Rs. 5760
3. Rs. 7500
4. Rs. 9600

Answer: Rs. 5760

A 16% stock bought at 64 gives a yield of 25%. If the annual earning is Rs. 1500, then the investment must be \(1500 \div 0.25 = 6000\). The intended option in the set is Rs. 5760, indicating a likely OCR or source inconsistency.