Investment Challenge Materials: Difference between revisions

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(Created page with "{{blc| Investment Options Sheet }} Investment Options Stocks: High-risk, High-reward Potential Returns: +20% to -20% per market period. Mechanism: Use a six-sided dice or random number generator to determine returns. Roll 1: +20% Roll 2: +10% Roll 3: 0% Roll 4: -10% Roll 5: -15% Roll 6: -20% Savings Account: Low-risk, Steady Growth Potential Returns: Fixed +2% per market period. Mechanism: Add 2% to the invested amount after each market period. Real Estate F...")
 
 
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{{blc| Investment Options Sheet }}
=== '''Investment Options''' ===
Investment Options


Stocks: High-risk, High-reward
==== '''Stocks: High-risk, High-reward''' ====


Potential Returns: +20% to -20% per market period.
* '''Potential Returns''': +20% to -20% per market period.
* '''Mechanism''': Use a six-sided dice or random number generator to determine returns.
** Roll 1: +20%
** Roll 2: +10%
** Roll 3: 0%
** Roll 4: -10%
** Roll 5: -15%
** Roll 6: -20%


Mechanism: Use a six-sided dice or random number generator to determine returns.
==== '''Savings Account: Low-risk, Steady Growth''' ====


Roll 1: +20%
* '''Potential Returns''': Fixed +2% per market period.
* '''Mechanism''': Add 2% to the invested amount after each market period.


Roll 2: +10%
==== '''Real Estate Fund: Medium Risk, Moderate Returns''' ====


Roll 3: 0%
* '''Potential Returns''': +10% to -5% per market period.
* '''Mechanism''': Use a six-sided dice or random number generator to determine returns.
** Roll 1-3: +10%
** Roll 4-5: 0%
** Roll 6: -5%


Roll 4: -10%
==== '''Start a Business: High Risk, High Potential Reward''' ====


Roll 5: -15%
* '''Potential Returns''': +50% or -30% after 3 market periods.
* '''Mechanism''': Use a coin flip or random binary generator at the end of 3 periods.
** Heads: +50%.
** Tails: -30%.
* '''Important''': No intermediate returns; the result applies only after 3 market periods.


Roll 6: -20%
==== '''Cryptocurrency: Very High-risk, Unpredictable Returns''' ====


Savings Account: Low-risk, Steady Growth
* '''Potential Returns''': +50%, 0%, or -50% per market period.
* '''Mechanism''': Use a six-sided dice or random number generator.
** Roll 1-2: +50%
** Roll 3-4: 0%
** Roll 5-6: -50%


Potential Returns: Fixed +2% per market period.
----


Mechanism: Add 2% to the invested amount after each market period.
=== '''Market Update Cards''' ===


Real Estate Fund: Medium Risk, Moderate Returns
==== '''Economic Boom''' ====


Potential Returns: +10% to -5% per market period.
* Effect: +5% to all investments this period.


Mechanism: Use a six-sided dice or random number generator to determine returns.
==== '''Market Crash''' ====


Roll 1-3: +10%
* Effect: -20% to Stocks and Cryptocurrency this period.


Roll 4-5: 0%
==== '''Housing Market Growth''' ====


Roll 6: -5%
* Effect: +10% to Real Estate Fund this period.


Start a Business: High Risk, High Potential Reward
==== '''Regulatory Changes''' ====


Potential Returns: +50% or -30% after 3 market periods.
* Effect: Cryptocurrency earns 0% this period regardless of dice roll.


Mechanism: Use a coin flip or random binary generator at the end of 3 periods.
==== '''Interest Rate Increase''' ====


Heads: +50%.
* Effect: Savings Account increases to +3% return for this period only.


Tails: -30%.
==== '''Tech Boom''' ====


Important: No intermediate returns; the result applies only after 3 market periods.
* Effect: +15% to Stocks this period.


Cryptocurrency: Very High-risk, Unpredictable Returns
==== '''Recession Warning''' ====


Potential Returns: +50%, 0%, or -50% per market period.
* Effect: -10% to all investments except Savings Account this period.


Mechanism: Use a six-sided dice or random number generator.
----


Roll 1-2: +50%
=== '''Investment Ledger''' ===
{| class="wikitable"
!Market Period
!Investment Type
!Starting Amount
!Return (%)
!Gain/Loss
!Ending Amount
|-
|1
|
|
|
|
|
|-
|2
|
|
|
|
|
|-
|3
|
|
|
|
|
|-
|4
|
|
|
|
|
|-
|5
|
|
|
|
|
|}
----


Roll 3-4: 0%
=== '''Instructions''' ===


Roll 5-6: -50%
# '''Allocate Funds''': Start by distributing your $1,000 among the five investment options. Record your allocation in the ledger.
 
# '''Market Updates''': For each market period, draw a Market Update Card and roll dice or use a random generator to determine returns for each investment type.
Market Update Cards
# '''Calculate Returns''': Update your ledger to reflect the returns for each investment. Reallocate funds if desired.
 
# '''Complete 5 Periods''': After 5 periods, calculate your total portfolio value and compare with your starting amount.
Economic Boom
# '''Reflection''': Discuss strategies, outcomes, and lessons learned about risk and reward.
 
Effect: +5% to all investments this period.
 
Market Crash
 
Effect: -20% to Stocks and Cryptocurrency this period.
 
Housing Market Growth
 
Effect: +10% to Real Estate Fund this period.
 
Regulatory Changes
 
Effect: Cryptocurrency earns 0% this period regardless of dice roll.
 
Interest Rate Increase
 
Effect: Savings Account increases to +3% return for this period only.
 
Tech Boom
 
Effect: +15% to Stocks this period.
 
Recession Warning
 
Effect: -10% to all investments except Savings Account this period.
 
Investment Ledger
 
Market Period
 
Investment Type
 
Starting Amount
 
Return (%)
 
Gain/Loss
 
Ending Amount
 
1
 
 
 
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
 
 
 
5
 
 
 
 
 
 
 
 
 
 
 
Instructions
 
Allocate Funds: Start by distributing your $1,000 among the five investment options. Record your allocation in the ledger.
 
Market Updates: For each market period, draw a Market Update Card and roll dice or use a random generator to determine returns for each investment type.
 
Calculate Returns: Update your ledger to reflect the returns for each investment. Reallocate funds if desired.
 
Complete 5 Periods: After 5 periods, calculate your total portfolio value and compare with your starting amount.
 
Reflection: Discuss strategies, outcomes, and lessons learned about risk and reward.

Latest revision as of 16:59, 1 January 2025

Investment Options

Stocks: High-risk, High-reward

  • Potential Returns: +20% to -20% per market period.
  • Mechanism: Use a six-sided dice or random number generator to determine returns.
    • Roll 1: +20%
    • Roll 2: +10%
    • Roll 3: 0%
    • Roll 4: -10%
    • Roll 5: -15%
    • Roll 6: -20%

Savings Account: Low-risk, Steady Growth

  • Potential Returns: Fixed +2% per market period.
  • Mechanism: Add 2% to the invested amount after each market period.

Real Estate Fund: Medium Risk, Moderate Returns

  • Potential Returns: +10% to -5% per market period.
  • Mechanism: Use a six-sided dice or random number generator to determine returns.
    • Roll 1-3: +10%
    • Roll 4-5: 0%
    • Roll 6: -5%

Start a Business: High Risk, High Potential Reward

  • Potential Returns: +50% or -30% after 3 market periods.
  • Mechanism: Use a coin flip or random binary generator at the end of 3 periods.
    • Heads: +50%.
    • Tails: -30%.
  • Important: No intermediate returns; the result applies only after 3 market periods.

Cryptocurrency: Very High-risk, Unpredictable Returns

  • Potential Returns: +50%, 0%, or -50% per market period.
  • Mechanism: Use a six-sided dice or random number generator.
    • Roll 1-2: +50%
    • Roll 3-4: 0%
    • Roll 5-6: -50%

Market Update Cards

Economic Boom

  • Effect: +5% to all investments this period.

Market Crash

  • Effect: -20% to Stocks and Cryptocurrency this period.

Housing Market Growth

  • Effect: +10% to Real Estate Fund this period.

Regulatory Changes

  • Effect: Cryptocurrency earns 0% this period regardless of dice roll.

Interest Rate Increase

  • Effect: Savings Account increases to +3% return for this period only.

Tech Boom

  • Effect: +15% to Stocks this period.

Recession Warning

  • Effect: -10% to all investments except Savings Account this period.

Investment Ledger

Market Period Investment Type Starting Amount Return (%) Gain/Loss Ending Amount
1
2
3
4
5

Instructions

  1. Allocate Funds: Start by distributing your $1,000 among the five investment options. Record your allocation in the ledger.
  2. Market Updates: For each market period, draw a Market Update Card and roll dice or use a random generator to determine returns for each investment type.
  3. Calculate Returns: Update your ledger to reflect the returns for each investment. Reallocate funds if desired.
  4. Complete 5 Periods: After 5 periods, calculate your total portfolio value and compare with your starting amount.
  5. Reflection: Discuss strategies, outcomes, and lessons learned about risk and reward.
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