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You are considering how to invest part of your retirement savings.You have decided to put $ 400...

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Finance

You are considering how to invest part of your retirementsavings.You have decided to put

$ 400 comma 000$400,000

into three? stocks:

58 %58%

of the money in GoldFinger? (currently

$ 18$18?/share),

12 %12%

of the money in Moosehead? (currently

$ 75$75?/share),

and the remainder in Venture Associates? (currently

$ 6$6?/share).

Suppose GoldFinger stock goes up to

$ 30$30?/share,

Moosehead stock drops to

$ 62$62?/share,

and Venture Associates stock

dropsdrops

to

$ 2$2

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?

Answer & Explanation Solved by verified expert
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NO OF SHARES ARE IN    See Answer
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Transcribed Image Text

You are considering how to invest part of your retirementsavings.You have decided to put$ 400 comma 000$400,000into three? stocks:58 %58%of the money in GoldFinger? (currently$ 18$18?/share),12 %12%of the money in Moosehead? (currently$ 75$75?/share),and the remainder in Venture Associates? (currently$ 6$6?/share).Suppose GoldFinger stock goes up to$ 30$30?/share,Moosehead stock drops to$ 62$62?/share,and Venture Associates stockdropsdropsto$ 2$2per 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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