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You are considering how to invest part of your retirement savings. You have decided to put $40,000 into three stocks: 50% of the money in
You are considering how to invest part of your retirement savings. You have decided to put $40,000 into three stocks: 50% of the money in Goldfinger (currently $25/share), 25% of the money in Moosehead (currently $80/share), and the remainder in Venture Associates (currently $2/share). None of the three stocks pay any dividends. Further, after one year, GoldFinger stock goes up to $30/share, Moosehead stock drops to $70/share, and Venture Associates stock rises to $3 per share. (a) What is the return on the portfolio as a percent? (Round your answer to two decimal places.) (b) If you don't buy or sell shares after the price change, what is the market value in $) of the portfolio? (Hint: To answer this question, you first need to determine how many shares of each stock you have purchased) What are your portfolio weights as percents at year-end? (Round your answers to two decimal places.) GoldFinger Moosehead Venture (c) How many shares of each stock will you have to buy/ sell to keep the portfolio weights the same? (Enter positive numbers for shares bought and negative numbers for shares sold. Round your answers to the nearest integer.) GoldFinger shares Moosehead shares Venture shares
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