Question

In: Finance

You are considering how to invest part of your retirement savings.You have decided to put $500,000...

You are considering how to invest part of your retirement savings.You have decided to put $500,000 into three​ stocks: 66% of the money in GoldFinger​ (currently $19​/share),19% of the money in Moosehead​ (currently $88​/share),and the remainder in Venture Associates​ (currently $8​/share). Suppose GoldFinger stock goes up to $43​/share, Moosehead stock drops to $69​/share, and Venture Associates stock drops to $4 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?

Solutions

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