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Stocks and Shares Practice Test 2

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Question : 21 of 36

Marks: +1, -0

Which is better, a stock 8% at 175 or 5% at 106?

8% at 175
5% at 106
Both are same
Cannot be compared
Data inadequate

Solution: 👈: Video Solution

Let the investment in each stock = (175 × 106)

Income from 8% stock at Rs 175

On investment of Rs 175, income = Rs 8

On investment of (175 × 106) income =

\frac{8}{175} \times 175 \times 106

= Rs 848

On investment of Rs 106, income = Rs 5

On investment of (175 × 106) income =

\frac{5}{106} \times 175 \times 106

= Rs 875

So, investment 5% stock at 106 is better.

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