You are considering how to invest part of your retirement savings.You have decided to put $ 500comma 000 into three stocks: 55% of the money in GoldFinger (currently $ 16/share), 16% of themoney in Moosehead (currently $ 89/share), and the remainder in Venture Associates (currently $ 4/share). Suppose Gold Finger stock goes up to $35/share, Moosehead stock drops to $ 51/share, andVenture Associates stock rises to $9 per share. a. What is the new value of the portfolio? b. Whatreturn did the portfolio earn? c. If you don't buy or sell any shares after the price change, what areyour new portfolio weights?

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Answered: You are considering how to invest part…

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 are considering how to invest part of your retirement savings. You have decided to put $500,000 into three stocks: 67% of the money in GoldFinger (currently $20/share), 5% of the money in Moosehead (currently $77/share), and the remainder in Venture Associates (currently $7/share). Suppose GoldFinger stock goes up to $44/share, Moosehead stock drops to $58/share, and Venture Associates stock drops to $6 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 $100,000 into three stocks: 57% of the money in GoldFinger (currently $27/share). 19% of the money in Moosehead (currently $78/share), and the remainder in Venture Associates (currently $9/share) Suppose GoldFinger stock goes up to $31/share, Moosehead stock drops to $55/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 eam? e 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)
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 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…
You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 61% of the money in GoldFinger (currently $24/share), 12% of the money in Moosehead (currently $94/share), and the remainder in Venture Associates (currently $7/share). Suppose GoldFinger stock goes up to $30/share, Moosehead stock drops to $52/share, and Venture Associates stock drops to $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? a. What is the new value of the portfolio? The new value of the portfolio is $ 579218. (Round to the nearest dollar.)
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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?
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