Question
You are considering how to invest part of your retirement savings.You have decided to put $ 600 000 into three shares: 68 % of the
You are considering how to invest part of your retirement savings.You have decided to put $ 600 000 into three shares: 68 % of the money in Minerva (currently $ 25/share), 9 % of the money in Baumann (currently $ 77/share), and the remainder in Martin Associates (currently $ 6/share). Suppose Minerva shares go up to $ 30/share, Baumann shares drop to $ 57/share, and Martin Associates shares rise to $ 17 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?You are considering how to invest part of your retirement savings.You have decided to put $ 600 000 into three shares: 68 % of the money in Minerva (currently $ 25/share), 9 % of the money in Baumann (currently $ 77/share), and the remainder in Martin Associates (currently $ 6/share). Suppose Minerva shares go up to $ 30/share, Baumann shares drop to $ 57/share, and Martin Associates shares rise to $ 17 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 (Round to the nearest dollar.)
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?
If you don't buy or sell any shares after the price change, the weight of Minerva is now
(Round to two decimal places.)
The weight of Baumann is now
(Round to two decimal places.)
The weight of Martin is now
(Round to two decimal places.)
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