Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 67% of the money in

You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 67% of the money in GoldFinger (currently $16/share), 18% of the money in Moosehead (currently $76/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $33/share, Moosehead stock drops to $67/share, and Venture Associates stock rises to $7 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? Question content area bottom Part 1 a. What is the new value of the portfolio? The new value of the portfolio is $enter your response here. (Round to the nearest dollar.) please answer all 5 parts

)

You have a portfolio with a standard deviation of 23% and an expected return of 16%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A 15% 21% 0.3 Stock B 15% 16% 0.6 Question content area bottom Part 1 Standard deviation of the portfolio with stock A is enter your response here%. (Round to two decimal places.) pls answer all 3 parts

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

Step: 3

blur-text-image

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

Crypto Asset Investing In The Age Of Autonomy

Authors: Jake Ryan

1st Edition

1119705363, 978-1119705369

More Books

Students also viewed these Finance questions