Your Brokerage Firm Allows Market Trading with an Initial Margin

question 12

Multiple Choice

Your brokerage firm allows market trading with an initial margin requirement equal to 60 percent plus an 8 percent broker loan rate.You have $6,000 to invest.How many shares of ABC can you purchase on margin? ABC stock currently sells for $50 a share.

• A) 100
• B) 200
• C) 92
• D) 194
• E) 108

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Definitions:

Id

In psychoanalysis, the part of personality containing inherited psychic energy, particularly sexual and aggressive instincts.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables, called factors.

Myers-Briggs Inventory

A personality assessment tool that categorizes individuals into 16 personality types based on preferences in four dimensions.

Case-study Analysis

A research method involving the detailed examination of a single case or cases, often used in psychology, business, or social sciences.