Question

Assertion (A) : Investing in 12% of the 100 shares at ₹150 means, an investment of ₹100 gives an annual income of ₹12.

Reason (R) : Annual income of an investor depends upon the face value of the share.

Options

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is false, but R is true.

Explanation:

Step 1 – Assertion: A is false. A 12% dividend on a ₹100 share gives an annual income of ₹12 per share, but the share costs ₹150. Thus, an investment of ₹100 does not give an annual income of ₹12.

Step 2 – Reason: R is true. Dividend income is calculated on the face value of the share.