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8. Account Margin (L04, CFA5) You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on margin. Later, the value of

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8. Account Margin (L04, CFA5) You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on margin. Later, the value of the stocks held short rises to $250,000. What is your account margin in percent? a. 20 percent b. 25 percent C. 33 percent d. 50 percent 9. Margin Calls (LO3, CFA4) You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker, who requires a maintenance margin of 30 percent. Which of the following is the largest value for your stock holdings for which you will still receive a margin call? a. $200,000 b. $160,000 c. $140,000 d. $120,000

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