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Basic Question 3 of 16

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%
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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
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

compare positions an investor can take in an asset

calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call

CFA® 2025 Level I Curriculum, Volume 3, Module 1.