Question
You are considering how to invest part of your retirement savings.You have decided to put $100,000 into three stocks: 69% of the money in GoldFinger
You are considering how to invest part of your retirement savings.You have decided to put
$100,000
into three stocks:
69%
of the money in GoldFinger (currently
$27/share),
17%
of the money in Moosehead (currently
$94/share),
and the remainder in Venture Associates (currently
$4/share).
Suppose GoldFinger stock goes up to
$38/share,
Moosehead stock drops to
$58/share,
and Venture Associates stock
rises
to
$12
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
$nothing.
(Round to the nearest dollar.)
b. What return did the portfolio earn?
The portfolio earned a return of
nothing%.
(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
nothing%.
(Round to two decimal places.)The weight of Moosehead is now
nothing%.
(Round to two decimal places.) The weight of Venture is now
nothing%.
(Round to two decimal places.)
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