Recently, You Sold 1,000 Shares of Stock for $21,400

question 104

Multiple Choice

Recently, you sold 1,000 shares of stock for $21,400. The sale was a short sale with an initial margin requirement of 60%. The maintenance margin is 30%. The stock is currently trading at $27.50 a share. What is your current margin position in this stock?

• A)24.51%
• B)28.11%
• C)32.09%
• D)43.98%
• E)46.69%

Differentiate between strong and weak comparative reasoning using the criteria of simplicity, testability, and comprehensiveness.

Explain the role of familiarity in enhancing the effectiveness of comparative reasoning.

Analyze the impact of comparative reasoning on argumentation and persuasion.

Assess how pattern recognition is fundamental to human reasoning and its relationship to comparative reasoning.

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Definitions:

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that affirms an individual's existing notions or assumptions.

Self-Serving Bias

A cognitive bias that causes individuals to attribute their successes to internal or personal factors while attributing failures to external or situational factors.

Aversive Prejudice

Subtle, often unconscious prejudice that manifests in avoidance of certain groups or individuals, without overt hostility or hatred.

Stereotypes

Oversimplified generalized ideas about a group of people that often do not reflect reality and can result in unfair assumptions.