5. You take out a long position on Apple shares on March 15th (103.38 per share), and have $5,000 of your own money available to do so. You also take out the maximum loan amount from a 40% margin account. The minimum maintenance requirement is 30%. Calculate the equity remaining in the account on September 15th (115.57) under the assumption of 5% interest on the margin loan. Please tabulate the opening position and the closing position.

6. Would you advise investors to buy shares in Apple? (Use both the conclusion you have drawn in Question 5 and the theory you have learned in this course) (

This question asks students to think about the factors that influence investment and to refer back to Tutorial 1. There are no correct answers to this but there should be evidence of the following for at least TWO factors:

• Definition of risk + return

• What constitutes a good investment under risk+return

• Example or further clarification

  After this the remaining marks should be allocated for:

• Introduction

• Bringing risk + return together

• Final recommendation

• Relationship to Apple / Data