Absolute noob here, but have gotten an exercise that I need to do and I can't figure out how to go about it.

So I have a Group (A) that is investing in 3 stocks (X, Y, Z). This group is given \$30,000 to start with. The group buys \$10,000 of X, \$15,000 of Y and \$5,000 of Z. After this price for these stocks are taken at two different time periods (Time 1 and Time 2). Based on those prices, portfolio value is calculated (e.g. For stock X, portfolio value would be Price(Time 2)/Price (Time 1)*\$10,000. In this way, values are calculated for all 3 stocks. So after these two time periods, the total portfolio value of the group has come down to 29,550. Now at the third time period (TIme 3), there is the option of readjusting the portfolio. So now Group (A) has decided to change to the following: \$10,000 of X, \$10,000 of Y and \$10,000 of P. So with different values and a new stock added and the old stock Z removed, how do I adjust all this to correctly reflect my portfolio value?

I hope this is clear. If you guys need more info, I can send you the file for you to have a look.

Originally Posted by golapi2211
Absolute noob here, but have gotten an exercise that I need to do and I can't figure out how to go about it.

So I have a Group (A) that is investing in 3 stocks (X, Y, Z). This group is given \$30,000 to start with. The group buys \$10,000 of X, \$15,000 of Y and \$5,000 of Z. After this price for these stocks are taken at two different time periods (Time 1 and Time 2). Based on those prices, portfolio value is calculated (e.g. For stock X, portfolio value would be Price(Time 2)/Price (Time 1)*\$10,000. In this way, values are calculated for all 3 stocks. So after these two time periods, the total portfolio value of the group has come down to 29,550. Now at the third time period (TIme 3), there is the option of readjusting the portfolio. So now Group (A) has decided to change to the following: \$10,000 of X, \$10,000 of Y and \$10,000 of P. So with different values and a new stock added and the old stock Z removed, how do I adjust all this to correctly reflect my portfolio value?

I hope this is clear. If you guys need more info, I can send you the file for you to have a look.
Probably best to attach it. Clear as mud

Originally Posted by skyQuake
Probably best to attach it. Clear as mud
Apologies....here goes

First, you do a valuation at time 3. Total port value is \$29,784.05.

Assuming u meant 1/3 of portfolio in each new stock (x, y, p) rather than \$10k of each,
You sell/buy shares until you get \$9928.02 in each stock. Price of stock is irrelevant, not we have also ignored volume of each stock.

New port value is \$29784.05 with \$9928.02 in each stock.

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