What factor is typically NOT assessed when determining margin requirements for a margin account?

The factor that is typically not assessed when determining margin requirements for a margin account is the investor's risk tolerance. Margin requirements primarily focus on quantitative financial data rather than qualitative assessments of an investor's psychological or emotional willingness to take on risk.

When determining margin requirements, the investor's credit history is important because it helps assess the likelihood that the investor will repay borrowed funds. The total value of the securities being purchased is crucial since it directly impacts the amount of collateral available for the margin loan and thus influences the margin calculation. The percentage of equity in the margin account is also important as it helps ensure that there is a sufficient safety net against potential losses on leveraged positions.

In contrast, risk tolerance is a personal measure of how much risk an investor is willing to accept, which does not have a direct effect on the actual margin calculations and requirements set by brokerages and regulatory bodies. Margin requirements are more objective and rooted in financial metrics rather than an individual’s subjective assessment of risk.