Mathematics
Assertion (A): Income of a shareholder is directly proportional to the number of shares he buys.
Reason (R): Income of a shareholder =
Both A and R are true, and R is the correct explanation of A.
Both A and R are true, but R is not the correct explanation of A.
A is true, but R is false.
A is false, but R is true.
Shares & Dividends
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Answer
Income of a shareholder is directly proportional to the number of shares he buys. This is true because the more shares one holds, the greater the total dividend received. So, income increases with the number of shares.
So, Assertion (A) is true.
By formula,
So, Reason (R) is also true.
Both A and R are true, and R is the correct explanation of A.
Hence, Option 1 is the correct option.
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Related Questions
Mr. Das invests in ₹ 100, 12% shares of Company A available at ₹ 60 each. Mr. Singh invests in ₹ 50, 16% shares of Company B available at ₹ 40 each. Use this information to state which of the following statements is true.
The rate of return for Mr. Das is 12%
The rate of return for Mr. Singh is 10%
Both Mr. Das and Mr. Singh have the same rate of return of 10%
Both Mr. Das and Mr. Singh have the same rate of return of 20%
Assertion (A): Market value of a share always remains the same.
Reason (R): The value of a share printed on the share certificate is called its market value.
Both A and R are true, and R is the correct explanation of A.
Both A and R are true, but R is not the correct explanation of A.
A is true, but R is false.
A is false, but R is true.
Assertion (A): Investing in 12% of the ₹ 100 shares at ₹ 150 means, an investment of ₹ 100 gives an annual income of ₹ 12.
Reason (R): Annual income of an investor depends upon the face value of the share.
Both A and R are true, and R is the correct explanation of A.
Both A and R are true, but R is not the correct explanation of A.
A is true, but R is false.
A is false, but R is true.
Assertion (A): A man invests ₹ 4,600 in ₹ 100 shares, paying 10% dividend and quoted at 15% premium. His annual dividend from these shares is ₹ 400.
Reason (R): Number of shares held by a person =
Both A and R are true, and R is the correct explanation of A.
Both A and R are true, but R is not the correct explanation of A.
A is true, but R is false.
A is false, but R is true.