Investing Rs. 1620 in an 8% stock yields Maria Rs. 135. What is the quoted value of the stock:_________?
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Answer: B. 96
Explanation
Investment return percentage is calculated by dividing annual income by total investment. Dividing 135 rupees by 1620 rupees yields an effective yield rate of 8.33 percent. An 8 percent dividend yielding approximately 8.33 percent corresponds to a quoted value of 96. Stock yield equals annual dividend divided by market investment price. Quoted market value reflects the percentage of nominal stock price traded. Financial returns fluctuate based on the initial capital invested in securities.
Bond markets use quoted values to determine purchasing attractiveness for investors. Yield calculations help portfolio managers compare returns across different stock issues. Understanding stock quotes is essential for personal wealth management. Choosing 80 undervalues the quoted stock price relative to the income generated. Choosing 106 overvalues the stock price given the specific investment return. Choosing 108 represents par value without accounting for the actual investment yield.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
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