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Basic Question 10 of 16
Minimum maintenance margin is the minimum proportion of ______.
B. the loan amount to the total value of the margined stock
C. the current value of the margined stock to the original purchase price of the margined stock
A. equity to the total value of the margined stock
B. the loan amount to the total value of the margined stock
C. the current value of the margined stock to the original purchase price of the margined stock
User Contributed Comments 1
| User | Comment |
|---|---|
| robbiecow | The MM = (Collateral - Loan)/Collateral |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
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.