CFA Practice Question

There are 275 practice questions for this study session.

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?

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
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