NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
An investor buys 200 shares at Rs 500 and sells them later at Rs 540 as a delivery transaction. Ignoring all charges and taxes, the investor's gross return on the invested amount is:
The gross return is 8%. The cost is Rs 1,00,000 and the sale proceeds are Rs 1,08,000, so the gain of Rs 8,000 divided by the cost of Rs 1,00,000 gives 8%. Using the sale value as the base would wrongly give 7.4%.
- A8%Correct
- B7.4%
- C40%
- D10%
Explanation
Investment = 200 x 500 = Rs 1,00,000. Sale = 200 x 540 = Rs 1,08,000. Gain = Rs 8,000, which is 8% of Rs 1,00,000. The 7.4% figure wrongly uses the sale value as the base (8,000/1,08,000). The 40% figure is the per-share gain in rupees, and 10% has no basis in the data.
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