Question

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

$ 600 comma 000$600,000

into three​ stocks:

51 %51%

of the money in GoldFinger​ (currently

$ 28$28​/share),

6 %6%

of the money in Moosehead​ (currently

$ 75$75​/share),

and the remainder in Venture Associates​ (currently

$ 4$4​/share).

Suppose GoldFinger stock goes up to

$ 36$36​/share,

Moosehead stock drops to

$ 67$67​/share,

and Venture Associates stock

risesrises

to

$ 16$16

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?

a. What is the new value of the​ portfolio?

The new value of the portfolio is

​$nothing.

​ (Round to the nearest​ dollar.)

b. What return did the portfolio​ earn?

The portfolio earned a return of

nothing​%.

​(Round to two decimal​ places.)

c. If you​ don't buy or sell any shares after the price​ change, what are your new portfolio​ weights?

The weight of Goldfinger is now

nothing​%.

​(Round to two decimal​ places.)  The weight of Moosehead is now

nothing​%.

​(Round to two decimal​ places.) The weight of Venture is now

nothing​%.

​(Round to two decimal​ places.)

Answer 1

	Total investment	600000
		Goldfinger	Moosehead	Venture Associates
	Amount invested	306000	36000	258000
	Share price	28	75	4
	No of shares	10928.57	480	64500
	New price	36	67	16
	New value	393428.5714	32160	1032000
a	Total value	1457588.571
b	Return	142.93%
c	New weights	26.99%	2.21%	70.80%

WORKINGS