What is the new value of the portfolio

Assignment Help Financial Management

Reference no: EM132036754

You are considering how to invest part of your retirement savings. You have decided to put $100,000 into three stocks: 61% of the money in GoldFinger (currently $29/share), 13 % of the money in Moosehead (currently $84/share), and the remainder in Venture Associates (currently $1/share). Suppose GoldFinger stock goes up to $44/share, Moosehead stock drops to $57/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?

Reference no: EM132036754

Questions Cloud

Using the proceeds to repurchase shares : What is the firm’s WACC after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)?

Comparing two different capital structures : Kyle Corporation is comparing two different capital structures, all-equity plan (Plan I) and levered plan (Plan II). What is the value of the firm under Plan I?

What are the cash flows from two-year coupon bond : What are the cash flows from the two-year coupon bond? What must be the two-year spot rate?

Exploit an expected rise in interest rates : An investor would want to __________ to exploit an expected rise in interest rates.

What is the new value of the portfolio : You are considering how to invest part of your retirement savings. What is the new value of the portfolio? What return did the portfolio earn?

Stock returns have covariance with market portfolio : Neon Corporation’s stock returns have a covariance with the market portfolio of .0345.

Using the altman original z-score model : Using the Altman’s Original Z-Score Model, if the calculated Z-score for a publicly traded company is 1.57, what can you conclude?

Planning one-month vacation : You are planning a one-month vacation in Sydney, Australia a winter vacation a year later.

What are the break-even points of the straddle : What are the break-even points of the straddle? Calculate the price of a long straddle with exercise price $110 which expires one year from now.

User Account

All Pages