CFA Practice Question
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%
Correct Answer: A
Your margin is the percentage of the investment's value that is represented by your own money. In this case it is 83% ($5,000/$6,000).
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 |