Question
You are considering how to invest part of your retirement savings.You have decided to put $ 400 comma 000 $400,000 into threestocks: 59 % 59%
You are considering how to invest part of your retirement savings.You have decided to put $ 400 comma 000
$400,000 into threestocks:
59 %
59% of the money in GoldFinger(currently $ 18
$18/share), 17 %
17% of the money in Moosehead(currently $ 97
$97/share), and the remainder in Venture Associates(currently $ 1
$1/share). Suppose GoldFinger stock goes up to $ 31
$31/share, Moosehead stock drops to $ 51
$51/share, and Venture Associates stock rises
rises to $ 20
$20 per share.
a. What is the new value of theportfolio?
b. What return did the portfolioearn?
c. If youdon't buy or sell any shares after the pricechange, what are your new portfolioweights?
a. What is the new value of theportfolio?
The new value of the portfolio is $
. (Round to the nearestdollar.)
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