Investment Challenge Materials

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%

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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.

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Investment Ledger

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

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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.