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You are considering how to invest part of your retirement savings. You have decided to put $400,000 into three stocks: 62% of the money in

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You are considering how to invest part of your retirement savings. You have decided to put $400,000 into three stocks: 62% of the money in GoldFinger (currently $27/share), 19% of the money in Moosehead (currently $86/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $30/share, Moosehead stock drops to $65/share, and Venture Associates stock drops to $2 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 new value of the portfolio is $ b. What return did the portfolio earn? The portfolio earned a return of %. (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? The weight of Goldfinger is now %. (Round to two decimal places.) The weight of Moosehead is now %. (Round to two decimal places.) The weight of Venture is now %. (Round to two decimal places.) (Round to the nearest dollar.) Using the data in the following table, estimate the average return and volatility for each stock. (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year 2008 2009 2010 2011 2012 2013 The return of stock A is The return of stock B is The variance of stock A is The variance of stock B is Stock A - 6% 7% 2% - 3% 4% 14% %. (Round to two decimal places.) %. (Round to two decimal places.) Stock B 29% 32% 9% - 5% - 4% 32% . (Round to five decimal places.) . (Round to five decimal places.) The standard deviation of stock A is The standard deviation of stock B is %. (Round to two decimal places.) %. (Round to two decimal places.)

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