Data below is applicable to questions 1 & 2. You have been approached by a trader that requires assistance on margin-buying and short-selling on Vodacom Group Ltd.. He has provided you with the current Bid and Ask price of Vodacom Group Ltd. as well as a forecast of the price in 1 month time (see table below). Assume a portfolio value/short position of R10 000.00: Bid Ask Today R90.63 R92.44 1 Month R110.57 R112.78

Question 1 Calculate the return assuming that shares are purchased on margin, where the margin amount is 80%, loan 20% and maintenance margin is 40%. A) -0.44% B) -0.6% C) -0.48% D) -0.36% E) -0.48% Question 2 Calculate the return assuming that shares are short-sold assuming an initial required margin of 40% and a maintenance margin of 25%. A) -61.1% B) -69.65% C) -62.32% D) -58.66% E) -50.41%