Which is better investment: 11% stock at 143 or 9% stock at 117?

A. 11% stock at 143
B. 39/4% stock at 117

C. Both are equally good
D. Cannot be compared, as the total amount of investment is not given.

• Question is wrong
  Let investment in each case be Rs. (143 x 117).
  Income in 1st case = Rs.(11/143)x 143 x 117= Rs. 1287.
  Income in 2nd case = Rs.[39/(4*117)]x 143 x 117 = Rs. 1394.25
  Clearly, 9* 3/4% stock at 117 is better.
  
  
• 11 years agoHelpfull: Yes(3) No(0)
• 11% stock at Rs.143(FV Rs 100) gives a return of Rs.11
  Effective rate of return is (11/143)*100=7.69%
  Similarly the effective rate of return on the
  second investment:(9/117)*100=7.69%
  Both are equally good( Answer option is C)
• 13 years agoHelpfull: Yes(0) No(1)