oney in GoldFinger (currently $15/share nd the remainder in Venture Associates a Moosehead stock drops to $59/share, a e new value of the portfolio? n did the portfolio earn?

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
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You are considering how to invest part of your retirement savings. You have decided to put $100,000 into three
stocks.
58% of the money in GoldFinger (currently $15/share), 16% of the money in Moosehead (currently
$83/share), and the remainder in Venture Associates (currently $3/share). Suppose GoldFinger stock goes up
to $31/share, Moosehead stock drops to $59/share, and Venture Associates stock rises to $7 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?
Transcribed Image Text:You are considering how to invest part of your retirement savings. You have decided to put $100,000 into three stocks. 58% of the money in GoldFinger (currently $15/share), 16% of the money in Moosehead (currently $83/share), and the remainder in Venture Associates (currently $3/share). Suppose GoldFinger stock goes up to $31/share, Moosehead stock drops to $59/share, and Venture Associates stock rises to $7 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?
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