You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing
Question:
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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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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