1. You are considering how to invest part of your retirement savings.You have decided to put $500,000 into three stocks: 52% of the money in GoldFinger (currently $23/share), 12% of the money in Moosehead (currently $95/share), and the remainder in Venture Associates (currently $8/share). Suppose GoldFinger stock goes up to $32/share, Moosehead stock drops to $67/share, and Venture Associates stock rises to $9 per share.

a. What is the new value of the portfolio? (round to nearest dollar)

b. What return did the portfolio earn? (round to two decimal points)

c. If you don't buy or sell any shares after the price change, what are your new portfolio weights? (round to two decimal points for each)

2. Suppose Autodesk stock has a beta of 2.15, whereas Costco stock has a beta of 0.73. If the risk-free interest rate is 6% and the expected return of the market portfolio is 11.5%, what is the expected return of a portfolio that consists of 60% Autodesk stock and 40% Costco stock, according to the CAPM? (Round to two decimal places for all.)