You are considering how to invest part of your retirement savings.You have decided to put $400,000 into...

90.2K

Verified Solution

Question

Finance

You are considering how to invest part of your retirementsavings.You have decided to put $400,000
into three? stocks: 64% of the money in GoldFinger? (currently27?/share), 25%
of the money in Moosehead? (currently $99?/share), and theremainder in Venture Associates? (currently
$4?/share). Suppose GoldFinger stock goes up to $32?/share,
Moosehead stock drops to $51?/share, and Venture Associatesstock rises to $15
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?

Answer & Explanation Solved by verified expert

4.5 Ratings (929 Votes)

SEE THE IMAGE ANY DOUBTSFEEL FREE See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You are considering how to invest part of your retirementsavings.You have decided to put $400,000into three? stocks: 64% of the money in GoldFinger? (currently27?/share), 25%of the money in Moosehead? (currently $99?/share), and theremainder in Venture Associates? (currently$4?/share). Suppose GoldFinger stock goes up to $32?/share,Moosehead stock drops to $51?/share, and Venture Associatesstock rises to $15per 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?