Question
What is a better investment, 4% stock at ₹ 120 or 3% stock at ₹ 80?
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First
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Second
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Both
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None of these
Solution
A.
First
4% stock at ₹ 120 = 4% of 120
and 3% stock at ₹ 80 = 3% of 80
= ₹ 2.40
It is clear that first investment is better.
