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Assume You Purchased 200 Shares of GE Common Stock on Margin

Question 12

Multiple Choice

Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker. If the initial margin is 55%, how much did you borrow from the broker?


A) $6,000
B) $4,000
C) $7,700
D) $7,000
E) $6,300

Correct Answer:

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