Problem:
You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 54% of the money in GoldFinger (currently $22/share), 13% of the money in Moosehead (currently $86/share), and the remainder in Venture Associates (currently $9/share). If GoldFinger stock goes up to $37/share, Moosehead stock drops to $53/share, and Venture Associates stock rises to $20 per share,
Required:
Question 1: What is the new value of the portfolio?
Question 2: What return did the portfolio earn?
Question 3: If you don't buy or sell shares after the price change, what are your new portfolio weights?
Note: Solve the given numerical problem and illustrate step by step calculation.