You are considering how to invest part of your retirement savings. You have decided to put $400,000 into three stocks: 53% of the money in GoldFinger (currently $16/share), 9% of the money in Moosehead (currently $96/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $31/share, Moosehead stock drops to $55/share, and Venture Associates stock rises to $18 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? The weight of Goldfinger is now %. (Round to two decimal places.) The weight of Moosehead is now %. (Round to two decimal places.) The weight of Venture is now %. (Round to two decimal places.)

You are considering how to invest part of your retirement savings. You have decided to put $400,000 into three stocks: 53% of the money in GoldFinger (currently $16/share), 9% of the money in Moosehead (currently $96/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $31/share, Moosehead stock drops to $55/share, and Venture Associates stock rises to $18 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? The weight of Goldfinger is now %. (Round to two decimal places.) The weight of Moosehead is now %. (Round to two decimal places.) The weight of Venture is now %. (Round to two decimal places.)

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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Similar questions

You are interested in buying the preferred stock of a bank that pays a dividend of RM1.80 every quarter. If you discount such cash flows at 8 percent, what is the price of this stock?
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One year ago, you purchased 454 shares of stock for $28.98 a share. The stock pays $1.02 a share in dividends each year. Today, you sold your shares for $25 a share. What is your total dollar return on this investment? Answer to two decimals
You have $56,000. You put 24% of your money in a stock with an expected return of 12%, $32,000 in a stock with an expected return of 15%, and the rest in a stock with an expected return of 20%. What is the expected return of your portfolio? The expected return of your portfolio is%. (Round to two decimal places.)
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?
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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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