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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%
Check Answer Previous Q Next Q Print

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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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® 2024 Level I Curriculum, Volume 3, Module 1.