K You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 52% of the money in Gold Finger (currently $28/share), 22% of the money in Moosehead (currently $96/share), and the remainder in Venture Associates (currently $4/share). Suppose Gold Finger stock goes up to $45/share, Moosehead stock drops to $65/share, and Venture Associates stock rises to $5 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?

K You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 52% of the money in Gold Finger (currently $28/share), 22% of the money in Moosehead (currently $96/share), and the remainder in Venture Associates (currently $4/share). Suppose Gold Finger stock goes up to $45/share, Moosehead stock drops to $65/share, and Venture Associates stock rises to $5 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?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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C.You register a saving plan offering $200,000 at the end of 20 years. The saving plan promises 6% APR (per year). How much do you need to deposit per year in the saving plan? D. You have a preferred stock paying $3 dividend. Its required rate of return is 10%. How much is the preferred stock? (Hint: the value of preferred stock is estimated with PV of perpetuity).
You are considering how to invest part of your retirement savings.You have decided to put$100,000 into three stocks: 55% of the money in GoldFinger (currently $24/share),23%of the money in Moosehead (currently$85/share),and the remainder in Venture Associates (currently $3/share).Suppose GoldFinger stock goes up to $33/share, Moosehead stock drops to $66/share, and Venture Associates stock rises to $5 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?
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $41.87 per share. She expects the price of the stock to rise to $58.68 over the next 3 years. During that time she also expects to receive annual dividends of $4.45 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 11%? b. What is its expected return? a. The intrinsic worth of this stock is $ nearest cent.) R (Round to the
Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, So. Is $100, and a call option expiring in one year has an exercise price, X, of $100 and is selling at a price, Co. 01 S10. With $10,000 to invest, you are considering three alternatives. Invest all $10,000 in the stock, buying 100 shares. Invest all $10,000 in 1,000 options (10 contracts). Buy 100 options (one contract) for $1,000, and invest the remaining $9,000 in a money market fund paying 4% annual interest. What is your rate of retum for each alternative for the following four stock prices in one year?
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K You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 52% of the money in Gold Finger (currently $28/share), 22% of the money in Moosehead (currently $96/share), and the remainder in Venture Associates (currently $4/share). Suppose Gold Finger stock goes up to $45/share, Moosehead stock drops to $65/share, and Venture Associates stock rises to $5 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?
You are considering how to invest part of your retirement savings. You have decided to put $240,000into three stocks: 40% of the money in GoldFinger (currently $20/share), 25% of the money inMoosehead (currently $85/share), and the remainder in Venture Associates (currently$2/share). If GoldFinger stock goes up to $30/share, Moosehead stock drops to $60/share, andVenture Associates stock rises to $3 per share,i. What is the new value of the portfolio?ii. What return did the portfolio earn?iii. If you don’t buy or sell shares after the price change, what are your new portfolio weights?
The stock price of Google is $589. You have $10,000 saved in a savings account. The monthly interest rate is 0.2%. You think the stock price will go down soon, and want to trade 20 shares. What should you do? Enter 20 for buying 20 shares (on margin if necessary), or -20 for selling or short-selling 20 shares. If the initial margin is 50%, what is the minimum additional dollar amount that you have to deposit in your brokerage account? What is your initial percentage margin (entered as a decimal number) once you've completed the deposit calculated in part 2? Two months later, the stock price is $609. Google paid a dividend of $7 per share just before the two months were over. What is your percentage margin (entered as a decimal number)?
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1. At the beginning of last year you invested 40000 lei in 800 shares of a corporation. At the end of the year the HPR was 10%. You sold the 400 shares and used the amount to buy 1000 shares of stock B. if the expected price is 63.25 lei for stock A and 30.8 lei for stock B? a. What is the expected value of your portfolio at the end of 2022? b. What is the expected return for your portfolio in 2022? c. What is the HPR associated to this investment?

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