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

Total value of Dave’s position = Value of 15,000 shares purchased at $10/share + Value of additional 7,000 shares purchased at $12.50/share = (15,000 * $10) + (7,000 * $12.50) = $150,000 + $87,500 = $237,500

Total quantity of shares owned by Dave = Quantity of initial shares purchased + Quantity of additional shares purchased = 15,000 + 7,000 = 22,000 shares

Average price of Dave’s position = Total value of Dave’s position / Total quantity of shares owned = $237,500 / 22,000 = $10.795 per share (rounded to two decimal places)

To calculate Dave’s total return as of the end of day on Tuesday, we need to determine the change in value of his position compared to the initial investment.

Change in value of Dave’s position = Value of his position at the end of day on Tuesday - Initial investment = $137,500 - $100,000 = $37,500

Dave’s total return = Change in value of his position / Initial investment = $37,500 / $100,000 = 37.5% (expressed as a percentage)

If Dave had not borrowed on margin, his return would have been calculated based on his initial investment only.

Change in value of Dave’s position without margin = Value of his position at the end of day on Tuesday - Initial investment without margin = $137,500 - $50,000 = $87,500

Dave’s return without margin = Change in value of his position without margin / Initial investment without margin = $87,500 / $50,000 = 175% (expressed as a percentage)