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 $175,000. What is your account margin in dollars?
a. $50,000
b. $75,000
c. $100,000
d. $150,000.
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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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