Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER THE FOLLOWING QUESTIONS: (Note: current entries are incorrect) You are considering how to invest part of your retirement savings. You have decided to

image text in transcribed

PLEASE ANSWER THE FOLLOWING QUESTIONS:

(Note: current entries are incorrect)

image text in transcribed

You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 45% of the money in GoldFinger (currently $29/share), 20% of the money in Moosehead (currently $84/share), and the remainder in Venture Associates currently S9/share). If GoldFinger stock goes up to $43/share, Moosehead stock drops to $66/share, and Venture Associates stock rises to $13 per share. a. What is the new value of the portfolio? b. What return did the portfolio earn? c. If you don't buy or sell any shares after the price change, what are your new portfolio weights? a. What is the new value of the portfolio? The number of shares of GoldFinger is 4,615 shares. (Round to the nearest integer.) The number of shares of Moosehead is 845 shares. (Round to the nearest integer.) The number of shares of Venture is 10,000 shares. (Round to the nearest integer.) The new value of the portfolio is $ 347,145 (Round to the nearest dollar.) b. What return did the portfolio earn? The portfolio earned a return of 73.57%. (Round to two decimal places.) c. If you don't buy or sell any shares after the price change, what are your new portfolio weights? Weight of GoldFinger is now 41.21 %. (Round to two decimal places.) Weight of Moosehead is now 15.58%. (Round to two decimal places.) Weight of Venture is now %. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Innovation Regulation And Crises In History

Authors: Harold James

1st Edition

0367669528, 978-0367669522

More Books

Students also viewed these Finance questions