You are considering how to invest part of your retirement savings. You have decided to put $400,000 into three stocks:64% of the money in GoldFinger (currently $23/share), 19% of the money in Moosehead (currently $83/share), and the remainder in Venture Associates (currently $8/share).Suppose GoldFinger stock goes up to $35/share, Moosehead stock drops to $50/share, and Venture Associates stock rises to $11 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.)

Question A. First determine the number of shares was invested in each stock. Number of Shares =…

Answered: You are considering how to invest part…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 7FPE

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Similar questions

You are considering how to invest part of your retirement savings. You have decided to put $100,000 into three stocks: 50% of the money in GoldFinger (currently $25/share), 25% of the money in Moosehead (currently $40/share), and the remainder in Venture Associates (currently $2/share). If GoldFinger stock goes up to $35/share, Moosehead stock drops to $20/share, and Venture Associates stock rises to $4 per share, What is the new value of the portfolio? What return did the portfolio earn? If you don’t buy or sell 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: 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?
You are considering how to invest part of your retirement savings.You have decided to put $600,000 into three stocks: 68% of the money in GoldFinger (currently $27/share), 22% of the money in Moosehead (currently $79/share), and the remainder in Venture Associates (currently $2/share). Suppose GoldFinger stock goes up to $31/share, Moosehead stock drops to $62/share, and Venture Associates stock rises to $13 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?
Suppose you have $39,000 you would like to invest in two different stocks, Stock Boll and Stock Coff. The buying limit on Stock Coff is $12,300 and you want to spend at least two times as much money on Stock Boll as Stock Coff. If Stock Boll earns 7% annual interest and Stock Coff earns 4% annual interest, how much money (in dollars) should you invest in each stock to maximize your annual interest earned? What is the maximum annual interest (in dollars)?
How am I supposed to solve for the max interest? You have $39,000 you would like to invest in two different stocks, Stock Boll and Stock Coff. The buying limit on Stock Coff is $11,400 and you want to spend at least three times as much money on Stock Boll as stock Coff. If Stock Boll earns 9% annual interest and Stock Coff earns 4% annual interest, how much money should you invest in each stock to maximize your annual interest earned? What is the maximum annual interst?
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?
Suppose you invest $15,000 by purchasing 200 shares of Abbott Labs (ABT) at $40 per share, 200 shares of Lowes (LOW) at $20 per share, and 100 shares of Ball Corporation (BLL) at $30 per share. The weight of Ball Corporation in your portfolio is?
You decided to invest $10,000 of your savings in a stock whose current price is $25 per share. To utilize the benefit of margin investing, you borrowed an additional $10,000 from your broker and invested $20,000 in the stock, If the maintenance margin is 30 pereent, at what price will you receive your first margin call?
Suppose you are thinking of purchasing the Moore Co.’s common stock today. If you expect Moore to pay $2.5, $2.625, $2.73, and $2.81 dividends at the end of year one, two, three, and four respectively and you believe that you can sell the stock for $40.97 at the end of year four. If you required return on this investment is 9%, how much will you be willing to pay for the stock today?
You are planning to purchase the stock of Martie Inc. and you expect it to pay a dividend of $3 in 1year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today?
Suppose that one year ago you bought 100 shares of SodaCo for $10 per share with the expectation of receiving a perpetual dividend of $1 per share. What was your expected annual percentage return on this investment? Today,SodaCo announces that it will increase its annual dividend to $2 per share.Upon announcement, the stock price rises to $20. If you then sell the stock,what percentage returnwould you realize on your investment?What annualreturnwould the buyer of your stock expect in the future? Why is there sucha difference in returns?
Four months ago, you purchased 900 shares of Turicchi Tours stock for $7.68 per share. Last month, you received a dividend payment of $.12 per share. Today, you sold the shares for $9.13 per share. What is your total dollar return on this investment?

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