Question

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

$600,000

into three​ stocks:

53%

of the money in GoldFinger​ (currently

$24​/share),

5%

of the money in Moosehead​ (currently

$90​/share),

and the remainder in Venture Associates​ (currently

$2​/share).

Suppose GoldFinger stock goes up to

$40​/share,

Moosehead stock drops to

$52​/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?

a. What is the new value of the​ portfolio?

The new value of the portfolio is

​$nothing.

​ (

Answer 1