Question
You are considering how to invest part of your retirement savings.You have decided to put 200,000$ into three stocks: 56% of the money in GoldFinger
You are considering how to invest part of your retirement savings.You have decided to put 200,000$ into three stocks: 56% of the money in GoldFinger (currently 24$/share), 12%of the money in Moosehead (currently 81$/share), and the remainder in Venture Associates (currently3$ /share). Suppose GoldFinger stock goes up to 42$/share, Moosehead stock drops to 65$/share, and Venture Associates stock to 11$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?
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