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Stocks and Shares

Q1: Which is better investment: 11% stock at 143  or  9% stock at 117?

A 11% stock at 143

B
9 3 % stock at 117
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C Both are equally good

D Cannot be compared, as the total amount of investment is not given.

ANS:B -

9 3 % stock at 117
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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.
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