Find new value of the portfolio

Assignment Help Finance Basics
Reference no: EM1356545

You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 50% of the money in GoldFinger (currently $25/share), 25% of the money in Moosehead (currently $80/share), and the remainder in Venture Associates (currently $2/share). If Goldfinger stock goes up to $30/share, Moosehead stock drops to $60/share, and Venture Associates stock rises 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 shares after the price change, what are your new portfolio weights?

 

Reference no: EM1356545

Questions Cloud

Networking and personal development : Networking and personal development - Expalin how might you use your network as a source for your own personal leadership development?
Design logic for application to allow user to enter item : Design the logic for an application that allows a user to enter an ordered item continuously until a sentinel value is entered. After each item, display its price or the message.
Illustrate at what price can the firm sell level of output : Illustrate at what price can the firm sell the level of output found in the previous question.
Explain what are the unique aspects of the medical staff : Explain What are the unique aspects of the medical staff bylaws as a contract in healthcare
Find new value of the portfolio : Suppose you are planning how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 50 percent of the money in GoldFinger.
Explain a brief summary of the project : Explain a brief summary of the project -If already completed, discuss whether or not the selected project has improved accounting standards.
Context of psychological testing : Explain the following in terms of its significance in the context of psychological testing.
Recording journal entries of investments : Prepare journal entries for investments using the fair value and the equity method. How does it relate to the practice of accounting and its uses in business?
Define impact on our practices as healthcare administrators : Explain and Summarize current anti-trust and restraint of trade laws which have a direct impact on our practices as healthcare administrators

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd