You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 64% of the money in GoldFinger (currently $29/share), 5% of the money in Moosehead (currently $89/share), and the remainder in Venture Associates (currently $8/share). Suppose GoldFinger stock goes up to $37/share, Moosehead stock drops to $67/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?

You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 64% of the money in GoldFinger (currently $29/share), 5% of the money in Moosehead (currently $89/share), and the remainder in Venture Associates (currently $8/share). Suppose GoldFinger stock goes up to $37/share, Moosehead stock drops to $67/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?

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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You invest $150 each month (starting today) into a mutual fund. You reinvest distributions. At the end of 14 years, you sell all your shares and receive $20,480. Calculate your rate of return.
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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?
You want to investment for retirement. You inherited $50,000 in April 2020. The Stock Market has lost 20% of its value from its high in 2019. Should you: A. Wait for the Stock Market to go down another 10 Percent? B. Invest the entire $50,000 now? C. Invest a small amount each month starting this month. Explain why you selected one of the strategies above.
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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