Stocks and Shares Practice Test 2

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 =

8

175

×175×106 = Rs 848
On investment of Rs 106, income = Rs 5
On investment of (175 × 106) income =

5

106

×175×106 = Rs 875
So, investment 5% stock at 106 is better.