Question

Which is better investment A which is 12% of Rs 100 share at 190 or B which is 10% Rs 120 share at Rs 90.

• A. A
• B. B
• C. Both are equal
• D. Can't be determined

Answer 1

The correct option is B

B

$\because$ Profit % $\times$ M.V=Dividend % $\times$ N.V

$1^{st}$ case (A)

$\frac{P}{100}\times 140=\frac{12}{100}\times 100$

P=8.51%.

$2^{nd}$ case (B)

$\frac{P}{100}\times 90=\frac{10}{100}\times 120$

P = 13.33%.