Which of the following is a better investment?

1. 10% ₹50 shares quoted at ₹80

2.5% ₹100 shares at a discount of ₹20

3. 15% 30 shares at par

To determine which of the given investments is better, we need to calculate the **effective rate of return** (or yield) for each option. The yield is given by the formula:

\[
\text{Yield} = \left(\frac{\text{Annual Dividend}}{\text{Market Price}}\right) \times 100
\]

Let's calculate the yield for each option:

### 1. **10% ₹50 shares quoted at ₹80**

- **Dividend:** 10% of ₹50 = ₹5
- **Market Price:** ₹80
- **Yield:** 

\[
\text{Yield} = \left(\frac{₹5}{₹80}\right) \times 100 = 6.25\%
\]

### 2. **2.5% ₹100 shares at a discount of ₹20**

- **Dividend:** 2.5% of ₹100 = ₹2.5
- **Market Price:** ₹100 - ₹20 = ₹80
- **Yield:** 

\[
\text{Yield} = \left(\frac{₹2.5}{₹80}\right) \times 100 = 3.125\%
\]

### 3. **15% ₹30 shares at par**

- **Dividend:** 15% of ₹30 = ₹4.5
- **Market Price:** ₹30
- **Yield:** 

\[
\text{Yield} = \left(\frac{₹4.5}{₹30}\right) \times 100 = 15\%
\]

### Conclusion:
- **Option 1:** Yield = 6.25%
- **Option 2:** Yield = 3.125%
- **Option 3:** Yield = 15%

**Option 3** (15% ₹30 shares at par) provides the highest yield at **15%** and is therefore the best investment among the three.

Would you like more details on how these calculations were made or have any other questions?

Here are some related questions for further exploration:
1. What is the significance of yield in investment decisions?
2. How do changes in market price affect the yield of a stock?
3. What other factors besides yield should be considered when choosing an investment?
4. How can dividends impact the overall return on investment?
5. What is the difference between dividend yield and capital gains?

**Tip:** Always consider both the yield and the risk associated with an investment to make a well-informed decision.

Compare three investment options based on yield calculations: 10% ₹50 shares quoted at ₹80, 2.5% ₹100 shares at a discount of ₹20, and 15% ₹30 shares at par. Understand how to calculate yield and determine which investment offers the best return. Learn more about investment analysis and stock valuation.

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