Answer:
Explanation:
Money invested in Gold finger = 56% of $400,000 = $224,000
No. of stocks of Gold finger purchased = $224,000
/$16 = 14,000 shares.
Money invested in Moose head = 18% of $400,000 = $72,000.
No. of stocks of Moose head = $72,000/$77 = 935 shares
Money invested in Venture Associates = 400,000-(224,000-72,000) = $104,000
No. of stocks of Venture Associates = $104,000/$4 = 26000 shares
New value of portfolio = (14,000 shares × $41) + (935 shares×$69) +(26000 shares×$17)
= $574,000 + $64,515 + $ 442,000
= $1,080,515
1. Thus portfolio value after all changes in stock prices are accounted for = $1,080,515
2. % change in portfolio = (1080515-400000)/400000 = 170%
3. Weight of each stock in the portfolio:
Weight of Gold finger = (574,000)/1080515 = 53.12%
Weight of Moose head = (64,515)/1080515 = 5.97%
Weight of Venture Associates = (442,000)/1080515 = 40.91%
