You are considering how to invest part of your retirement savings.You have decided to put $400,000
into three stocks 59% of the money in GoldFinger (currently $ 25/share), 17 % of the money in Moosehead (currently
$ 97/share),and the remainder in Venture Associates (currently $ 10/share).
Suppose GoldFinger stock goes up to $34/share,
Moosehead stock drops to $60/share, and Venture Associates stock rises to $ 19 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?
Shares inv. in Goldfinger = Amnt inv.*%age in Goldfinger/price of Goldfinger=400000*0.59/25=9440 | |||||||||
Shares inv. in Moosehead = Amnt inv.*%age in Moosehead/price of Moosehead=400000*0.17/97=701.0309 | |||||||||
Shares inv. in Venture ass. = Amnt inv.*%age in Venture ass./price of Venture ass.=400000*0.24/10=9600 | |||||||||
A. | |||||||||
New portfolio value= Goldfinger new price*Goldfinger shares + Moosehead new price*Moosehead shares + Venture ass. new price*Venture ass. shares | |||||||||
=34*9440+60*701.0309+19*9600 | |||||||||
=545421.85 | |||||||||
B. | |||||||||
Return % = New portfolio value/old portfolio value-1 | |||||||||
=545421.85/400000-1 | |||||||||
=36.36% | |||||||||
C. | |||||||||
New weight of Goldfinger = New price*shares/new porfolio value | |||||||||
=34*9440/545421.85 | |||||||||
=0.5885 | |||||||||
New weight of Moosehead = New price*shares/new porfolio value | |||||||||
=60*701.0309/545421.85 | |||||||||
=0.0771 | |||||||||
New weight of Venture ass. = New price*shares/new porfolio value | |||||||||
=19*9600/545421.85 | |||||||||
=0.3344 |
You are considering how to invest part of your retirement savings.You have decided to put $400,000...
You are considering how to invest part of your retirement savings.You have decided to put $200,000 into three stocks: 60% of the money in GoldFinger (currently $22/share), 30% of the money in Moosehead (currently $86/share), and the remainder in Venture Associates (currently $8/share). If GoldFinger stock goes up to $31/share, Moosehead stock drops to $61/share, and Venture Associates stock rises to $18 per share. 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 $500,000 into three stocks: 59% of the money in GoldFinger (currently $16/share), 13% of the money in Moosehead (currently $77/share), and the remainder in Venture Associates (currently $2/share). Suppose GoldFinger stock goes up to $35/share, Moosehead stock drops to $62/share, and Venture Associates stock rises to $18 per share. a. What is the new value of the portfolio? b. What return did the portfolio...
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...
You are considering how to invest part of your retirement savings. You have decided to put $ 500,000 into three stocks: 66 %of the money in GoldFinger (currently $ 27/share), 19 % of the money in Moosehead (currently $ 83 /share), and the remainder in Venture Associates (currently $ 1 /share). Suppose GoldFinger stock goes up to $ 38/share, Moosehead stock drops to $ 52 /share, and Venture Associates stock rises to $ 18 per share. a. What is the...
You are considering how to invest part of your retirement savings. You have decided to put 5600,000 into three stocks 63% of the money in GoldFinger (currently 52/share), 21% of the money in Moosehead (currently $85/share), and the remainder in Venture Associates (currently 54/share) Suppose GoldFinger stock goes up to 536/share, Moosehead stock drops to $55/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...
You are considering how to invest part of your retirement savings.You have decided to put $500,000 into three stocks:51% of the money in GoldFinger (currently $28/share), 17% of the money in Moosehead (currently $79/share), and the remainder in Venture Associates(currently $9/share).Suppose GoldFinger stock goes up to $43/share, Moosehead stock drops to $51/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...
You are considering how to invest part of your retirement savings. You have decided to put $ 500 comma 000 into three stocks: 66 % of the money in GoldFinger (currently $ 27 /share), 19 % of the money in Moosehead (currently $ 83 /share), and the remainder in Venture Associates (currently $ 1 /share). Suppose GoldFinger stock goes up to $ 38 /share, Moosehead stock drops to $ 52 /share, and Venture Associates stock rises to $ 18 per...
You are considering how to invest part of your retirement savings.You have decided to put $100,000 into three?stocks: 54% of the money in GoldFinger? (currently $16?/share), 11 % of the money in Moosehead? (currently $88?/share), and the remainder in Venture Associates? (currently $7?/share). Suppose GoldFinger stock goes up to $39?/share, Moosehead stock drops to $63?/share, and Venture Associates stock risesrises to $12 per share.
Homework help!! You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 66% of the money in GoldFinger (currently $2B/share), 18% of the money in Moosehead (currently $88/share), and the remainder in Venture Associates (currently $9/share). Suppose GoldFinger stock goes up to $31/share, Moosehead stock drops to $59/share, and Venture Associates stock rises to $15 per share. a. What is the new value of the portfolio? b. What return did...
- 9: ⓇP 12-4 (similar to) 3 Question Help est You are considering how to invest part of your retirement savings. You have decided to put $100,000 into three stocks: 54% of the money in GoldFinger (currently $26/share), 16% of the money in Moosehead (currently $86/share), and the remainder in Venture Associates (currently $2/share). Suppose GoldFinger stock goes up to $30/share, Moosehead stock drops to $5//share, and Venture Associates stock rises to $3 per share. a. What is the new...