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?

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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 2P

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