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 $ 6 0 0 comma 0 0 0 into three

You are considering how to invest part of your retirement savings.You have decided to put $ 600 comma 000 into three shares:
66% of the money in Minerva(currently $ 27/share),12% of the money in Baumann(currently $ 98/share), and the remainder in Martin Associates(currently $ 3/share). Suppose Minerva shares go up to $ 42/share, Baumann shares drop to $ 52/share, and Martin Associates shares rise to $ 13 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.)
Part 2
b. What return did the portfolio earn?
The portfolio earned a return of
enter your response here%.(Round to two decimal places.)
Part 3
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
enter your response here%.(Round to two decimal places.)
Part 4
The weight of Baumann is now
enter your response here%.(Round to two decimal places.)
Part 5
The weight of Martin is now
enter your response here%.(Round to two decimal places.)

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

Technical Analysis Of The Financial Markets

Authors: John J. Murphy

1st Edition

0735200661, 978-0735200661

More Books

Students also viewed these Finance questions

Question

How can a PA use the internet to assist the PA practice?

Answered: 1 week ago

Question

if a 15year has $100000 in interest can he still be claimed

Answered: 1 week ago

Question

1. Who is your target audience? (everyone cannot be an answer here)

Answered: 1 week ago

Question

What problems have created the client's needs?

Answered: 1 week ago

Question

create simple design pieces exhibiting visual and rhetorical focus.

Answered: 1 week ago