What is a better investment, 4% stock at Rs. 120 or 3% stock at Rs. 80?
Rs. 120 पर 4% स्टॉक या Rs. 80 पर 3% स्टॉक में कौन-सा निवेश बेहतर

Options

A. पहला
B. दूसरा
C. दोनों
D. इनमें से कोई नहीं

Explanation

To determine which investment is better between a 4% stock at Rs. 120 and a 3% stock at Rs. 80, we will calculate the yield (return) of each investment.

### Step 1: Calculate the yield of the 4% stock at Rs. 120
The formula for yield is:
\[ \text{Yield} = \left( \frac{\text{Dividend}}{\text{Market Price}} \right) \times 100 \]
For the 4% stock:
- Dividend = 4% of Rs. 100 (since the face value of stocks is usually considered Rs. 100)
- Market Price = Rs. 120

Calculating the yield:
\[ \text{Dividend} = \frac{4}{100} \times 100 = Rs. 4 \]
\[ \text{Yield} = \left( \frac{4}{120} \right) \times 100 = \frac{400}{120} = \frac{40}{12} \approx 3.33\% \]

### Step 2: Calculate the yield of the 3% stock at Rs. 80
For the 3% stock:
- Dividend = 3% of Rs. 100
- Market Price = Rs. 80

Calculating the yield:
\[ \text{Dividend} = \frac{3}{100} \times 100 = Rs. 3 \]
\[ \text{Yield} = \left( \frac{3}{80} \right) \times 100 = \frac{300}{80} = \frac{30}{8} = 3.75\% \]

### Step 3: Compare the yields
- Yield of 4% stock at Rs. 120 = 3.33%
- Yield of 3% stock at Rs. 80 = 3.75%

Since 3.75% (yield of the 3% stock) is greater than 3.33% (yield of the 4% stock), the better investment is the 3% stock at Rs. 80.

### Conclusion
The better investment is the **3% stock at Rs. 80**.

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