Question

You are considering how to invest part of your retirement savings.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 1

NO OF SHARES ARE IN FRACTION BUT NOT ROUNDED OTHERWISE THE ANSWER WILL DIFFER. AND NOTHING IS MENTIONED, SO I DID NOT ROUND.