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You are considering how to invest part of your retirement savings. You have decided to put...

You are considering how to invest part of your retirement savings. You have decided to put

$200,000 into three​ stocks:

52% of the money in Goldfinger​ (currently $19​/share),

17% of the money in Moosehead​ (currently $95​/share),

and the remainder in Venture Associates​ (currently $3​/share).

Suppose Goldfinger stock goes up to $37​/share, Moosehead stock drops to $58​/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?

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Answer #1

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