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Question

A 6% stock yields 8%. The market value of the stock is:

Options:
A .  Rs. 48
B .  Rs. 75
C .  Rs. 96
D .  Rs. 133.33
Answer: Option B

For an income of Rs. 8, investment = Rs. 100.


For an income of Rs. 6, investment = Rs.  \(\left(\frac{100}{8}\times6\right)\) = Rs.75.


So , Market value of Rs. 100 stock = Rs. 75.


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