Mathematics
Assertion (A) : It is better to invest in 16% ₹ 100 shares at ₹ 80 than in 20% ₹ 100 shares at ₹ 120.
Reason (R) : Performance of any share depends on returns %.
Return % =
A is true, R is false.
A is false, R is true.
Both A and R are true.
Both A and R are false.
Shares & Dividends
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Answer
Since, Profit% on M.V. = Dividend% on N.V.
In first case :
P% on ₹ 80 = 16% on ₹ 100
= 20%.
In second case :
P% on ₹ 120 = 20% on ₹ 100
∴ It is better to invest in 16% ₹ 100 shares at ₹ 80.
∴ Assertion (A) is true.
By formula,
Return % = .
∴ Reason (R) is true.
Hence, Option 3 is the correct option.
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