Interpreted Prediction
A 33% decline in stock value can result in the loss of an entire $100,000 investment when margin debt is used.
AI Evaluation Notes
A 33% decline in stock value, when using 2:1 margin (borrowing $100,000 to invest $200,000), would indeed wipe out the initial $100,000 investment. The prediction is accurate based on the leverage described.
Prediction Details
Topic