Purchase Solution

Value of investment portfolio after price changes, RRI

Not what you're looking for?

Ask Custom Question

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?

Please show in excel.

Purchase this Solution
Solution Summary

The solution determines the value of an investment portfolio after price changes. The rate of return on the investment is determined.

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
Recent Feedback
  • "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
  • "thank you!"
  • "Thank you again Jayant. You are super fast. "
  • "Thank you Jayant. You are appreciated. "
  • "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Pernelli Scenario: Stock Index Futures

    Market price)* $500 Strike price = 769 Market price = 691.40 Value of put = (769-691.40)*500 = 77.6*500 = $38800 Value of the portfolio after decline (375000- 52000): 323000 Add: Profit from put hedge (38800-2900): 35900 Total value: $358900

  • Investment Portfolio Analysis

    Recommend to the Smiths who should have responsibility for their investment policy and for changes in that policy. The person who should have the responsibility for their investment policy and for changes in that policy is the portfolio manager.

  • Fundamental analysis and technical analysis

    The value of the portfolio can be increased with sale and purchase of equity shares in order to increase the value of the invested funds.

  • Graphing data for investors

    1909 Graphing data for investors I need to analyze data (portion of the retirement investment portfolio) and graph the not so obvious info (such as total value) in a bar, pie, and line graph.

  • Portfolio Management for personal financial planning

    Calculate the weightings of each fund in your portfolio by dividing the current value of each asset class by the total current portfolio value. Compare this figure to the original weightings. Are there any significant changes?

  • Diversification of an International Portfolio

    The changes in commodity prices are based on fluctuating market price and the investor can invest in them on exchanges. One of the most aggressive investment vehicles is hedge funds.

  • Cumulative Rate of Return of Stocks

    The balance in the margin account goes below the minimum maintenance margin; hence margin call will be received at the end of Wednesday. 4. What will be the cumulative rate of return on your investment after Wednesday?

  • Financial Analysis Using Excel: Bond Valuation

    Bond Valuation After recently receiving a bonus, you have decided to add some bonds to your investment portfolio.

  • EFFICIENT FRONTIER AND OPTIMAL PORTFOLIO

    As a result of a lack of liquidity, you may have to sell the investment at a price below its fair value. Currency risk. When you buy a company's stocks or bonds, you are buying a piece of that company's business operations.

View More Related Solutions