To calculate the average price of Dave’s position as of the end of day on Tuesday, we need to consider the total value of his purchases and the total quantity of shares he owns.

Total value of purchases: 15,000 shares purchased at $10.00 = $150,000 15,000 shares purchased at $10.00 = $150,000 7,000 shares purchased at $12.50 = $87,500

Total quantity of shares: 15,000 shares + 15,000 shares + 7,000 shares = 37,000 shares

Average price of Dave’s position: Total value of purchases / Total quantity of shares ($150,000 + $150,000 + $87,500) / 37,000 shares = $487,500 / 37,000 shares ≈ $13.18

Therefore, the average price of Dave’s position as of the end of day on Tuesday is approximately $13.18.

To calculate Dave’s total return as of the end of day on Tuesday, we need to consider the change in the value of his equity.

Initial equity: $100,000 Equity at the end of day on Tuesday: $137,500

Total return: Equity at the end of day on Tuesday - Initial equity $137,500 - $100,000 = $37,500

Therefore, Dave’s total return as of the end of day on Tuesday is $37,500.

If Dave had not borrowed on margin, his return would have been different. Borrowing on margin allows Dave to increase his buying power and potentially amplify his returns. However, it also increases the risk and potential losses.

Without borrowing on margin, Dave’s purchases would have been limited to the cash he had available. In this case, he would not have been able to purchase the additional 7,000 shares at $12.50.

Therefore, his return would have been based solely on the initial 15,000 shares purchased at $10.00.

Total return without borrowing on margin: (15,000 shares at $13.00 - 15,000 shares at $10.00) * 15,000 shares ($3.00 * 15,000 shares) = $45,000

Therefore, Dave’s return without borrowing on margin would have been $45,000.