Teaching Ideas & Investment Portfolio

  • 8/1/2013 12:38:00 AM
  • Daniel

We would like to assist teachers in meeting the curriculum that deal with money management and capital markets mostly in the senior level courses of business, economics, and mathematics. We’ve provided a sample activity that teachers can use and adapt for there classrooms.

The ideas here also deal with the principles of personal money management and investing while offering insight into career opportunities in business and finance.

The idea of the activity is a project-based co-operative unit where students work in small groups to build and present an investment portfolio for a fictional client. In order to achieve this goal, a series of lessons and activities have been created to support both teachers and their students through each of the stages of this learning process.

First up the teacher will need to create a new game with Student Stock Trader, once this has been done, the teacher can share the Join code with the student groups.

Each group will use a display name of the fictional client they are representing.

Each team will play the role of a financial planner who will propose a personal portfolio for a client. Your team will present your findings in two forms:

  • A written report for the client and
  • A presentation of the results to the client, using the data from Student Stock Trader.

 

Each group will be marked around the following areas:

  • Investor Personality Profile
  • Investment Goals
  • Asset Allocation
  • Investment Decisions
  • Portfolio Monitoring

 

Investor Personality Profile

Each group will  have the freedom to create a fictitious client. Each client may be any age, sex or marital status. Group’s also determine the
person’s occupation, savings, income, number of children. As you do the investor profile activity, try to answer the
questions as your client would. Keep track of the questions and answers as part of the profile.

Groups must write a profile of the client and determine a investor personality type.

Criteria:

Has the team created a realistic profile of the client and provided answers to the kinds of questions a financial planner
would ask? Is the goal clearly stated in terms of time?

 

Investment Goals

Groups will state specifically how much money the client will need to meet his or her investment goal and how much
the client must save weekly, monthly or yearly to meet that goal.

Criteria:

Has the team stated the goal clearly and given the dollar amount required to meet it?
Has the team offered clear and objective evidence to explain the monthly savings required to meet the goals? Has the team
properly referenced all sources?

 

Asset Allocation

Groups will use the investor profile to develop an asset allocation model dividing the investments into cash, fixed
income and equity. Students will allocate a budget for any shares that will be purchased using the Stock Market Simulator – Student Stock Trader.

Criteria:

Has the team shown an understanding of risk, liquidity, return and time frame in selecting an asset allocation? Has the
team offered clear and objective evidence to support their asset allocation?

 

Investment Decisions

There is no limit on the number of investments chosen but each should be chosen for a specific reason.

Criteria:

Does the team have specific investments – name, institution, costs, etc.? Does the team offer reasons why one investment was chosen over another? Is there diversity within the category and a reason for that diversity? Do one or more of the choices reflect research and a desire to try something different and less traditional?

 

Portfolio Monitoring

The group should monitor the performance of the portfolio over a period of weeks, each day the students should track the gains and losses and look to identify segments that show how a well diversified portfolio even’s out the up’s and down’s of specific markets.

Criteria:

The group should provide examples of investments that are performing as expected, this might include grouped shares that form part of a diversified set of investments. The goal for the students is to understand ‘having all your eggs in one basket’ can be a bad strategy.