Question

You are considering how to invest part of your retirement savings.You have decided to put $ 600 000 into three​ shares: 68 % of the money in Minerva​ (currently $ 25​/share), 9 % of the money in Baumann​ (currently $ 77​/share), and the remainder in Martin Associates​ (currently $ 6​/share). Suppose Minerva shares go up to $ 30​/share, Baumann shares drop to $ 57​/share, and Martin Associates shares rise to $ 17 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?You are considering how to invest part of your retirement savings.You have decided to put $ 600 000 into three​ shares: 68 % of the money in Minerva​ (currently $ 25​/share), 9 % of the money in Baumann​ (currently $ 77​/share), and the remainder in Martin Associates​ (currently $ 6​/share). Suppose Minerva shares go up to $ 30​/share, Baumann shares drop to $ 57​/share, and Martin Associates shares rise to $ 17 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​ (Round to the nearest​ dollar.)

b. What return did the portfolio​ earn?

The portfolio earned a return of

​(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?

If you​ don't buy or sell any shares after the price​ change, the weight of Minerva is now

​(Round to two decimal​ places.)  

The weight of Baumann is now

​(Round to two decimal​ places.)

The weight of Martin is now

​(Round to two decimal​ places.)

Answer 1