Question

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 $400,000 into three​ stocks: 53%

of the money in GoldFinger​ (currently $22​/share), 7% of the money in Moosehead​ (currently $79​/share), and the remainder in Venture Associates​ (currently $1​/share).

Suppose GoldFinger stock goes up to $30​/share, Moosehead stock drops to $62​/share, and Venture Associates stock rises to $8 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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