You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing

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You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker. Later, the value of your stock holdings falls to $150,000. What is your account margin in percent?

a. 25 percent

b. 33 percent

c. 50 percent

d. 75 percent.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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