You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 69% of the money in
You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 69% of the money in GoldFinger (currently $27/share), 13% of the money in Moosehead (currently $98/share), and the remainder in Venture Associates (currently $8/share). If GoldFinger stock goes up to $44/share, Moosehead stock drops to $63/share, and Venture Associates stock rises to $15 per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?
c. If you do not buy or sell shares after the price change, what are your new portfolio weights?
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