Elaine Plans to Purchase 100 Shares of Michigan International Stock

question 357

Multiple Choice

Elaine plans to purchase 100 shares of Michigan International stock at $44 per share.The current margin rate is 40%.The maximum amount that Elaine could borrow from her broker is:

• A)$1,100.
• B)$1,760.
• C)$2,640.
• D)$4,400.

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Definitions:

Symptom of Groupthink

A sign indicating the presence of groupthink, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Group Agreement

The consensus or unified decision-making process within a group, where members collectively agree upon solutions or actions.

Bad Decision

A choice or judgment that results in undesired outcomes, often based on faulty reasoning, insufficient information, or emotional biases.

Groupthink

A phenomenon where the desire for harmony or conformity in a decision-making group leads to an incorrect or deviant decision-making outcome.