Assume You Have a Margin Account with a 50% Initial

question 251

Multiple Choice

Assume you have a margin account with a 50% initial margin.You purchase 100 shares of Microsoft at $150 per share.The price increases to $175 per share.What is the net value of your investment (margin) now?

• A)$17,500
• B)$15,000
• C)$ 7,500
• D)$ 3,750
• E)None of the above

---

Definitions:

Volcanic Ash

Fine particles of rock and volcanic glass created during explosive volcanic eruptions, capable of being carried long distances by wind.

Slope Failure

The movement and failure of slope materials like soil and rock, often leading to landslides, avalanches, or other forms of mass wasting.

Rock Avalanche

High-velocity, turbulent flow of rock, sediment, and soil that results from the collapse of a steep mountain front.

Debris Slide

The downslope movement of soil, weathered sediment, or other unconsolidated material, partly as a sliding, coherent mass and partly by internal shearing and flow.