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**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).

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**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 |