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Basic Question 3 of 16
If you take $5,000 of your own money and borrow an additional $1,000 from your broker, your total investment will be $6,000. What is your margin?
B. 16.7%
C. 71.14%
A. 83%
B. 16.7%
C. 71.14%
User Contributed Comments 4
| User | Comment |
|---|---|
| kalps | Marging is the percentage of the investment that is represented by your own money i.e. 5/6 = 83% |
| achu | my PERCENTAGE margin, per the notes. |
| davcer | margin is similar to your own equity |
| Kiniry | Margin=Me |
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Martin Rockenfeldt
Learning Outcome Statements
compare positions an investor can take in an asset
calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call
CFA® 2024 Level I Curriculum, Volume 3, Module 1.