Mathematics
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.
Shares & Dividends
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Answer
Given,
Face value = ₹ 100
Market value = ₹ 150
Dividend rate = 12%
By formula,
Annual income = No. of shares × Rate of div. × N.V. of 1 share
However, the investment was ₹ 150 (the market price), not ₹ 100.
So, an investment of ₹100 does not give ₹ 12 in income — ₹ 12 is earned on ₹ 150.
∴ Assertion (A) is false.
By formula,
Annual income = No. of shares × Rate of div. × N.V. of 1 share
This means the income does depend on the face value, not the market value.
∴ Reason (R) is true.
Hence, Option 4 is the correct option.
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