Question

Score: 0 of 1 pt 3 of 15 (2 complete) P 12-4 (similar to) You are considering how to invest part of your retirement savings. You have decided to put $300,000 into three stocks: 52% of the money in GoldFinger (currently $24/share), 24% of the money in Moosehead (currently $71/share), and the remainder in Venture Associates (currently $4/share). Suppose GoldFinger stock goes up to $36/share, Moosehead stock drops to $57/share, and Venture Associates stock drops to $3 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.)

Answer 1

Number of shares of Gold finger Number of shares of Moosehead Number of shares of Venture associates % of investment 52% 24% 24% Savings Price per sha Number of shares 300000 24 6500 300000 71 1014 300000 18000 440 New value of portfolio value of shares of Gold finger Value of shares of Moosehead Value of shares of Venture associates Total Number of shares New price 6500 1014 18000 Value 36 234000 57 57798 54000 345798 b) Return on portfolio: (345798-300000)/300000*100 = 15.27 No of shares Weights of shares of Gold finger Weights of shares of Moosehead Weights of shares of Venture associates New price 6500 1014 5 18000 Weights 67.67 7 16.72 15.62