– GETTING STARTED
Congratulations, you have an imaginary $100,000 and a real 13 weeks to learn about investments
and make (or lose) a fortune. You will invest in financial assets so as to maximize your gain,
assuming liquidation by the end of the semester.
While you may eventually choose to buy a mix of stocks, mutual funds, money market
instruments, we will start with stock only.
In subsequent assignments, we will talk about bonds,
mutual funds, etc.
We will be using an on-line simulation that has some minor flaws, but is free.
There will be homework and quiz questions drawn from the game which will count in your
for the best performing portfolio --
and for the worst portfolio,
$5 (real, not
This is short-run investing with no penalty for bad results, so unlike the real world, feel free
to take risks
Many/most economists believe that one cannot consistently outperform the stock market -
that is, financial markets are efficient.
They therefore recommend no-load, index stock
You won’t win this game using these, but you will do very well in the real-
Look at the CNN, WSJ, Times, Barons, etc. for “tips” and analyses on “hot” stocks. Of
course, these generally don’t work
If you know a bit about an industry, a company, etc., by all means, look into it
Leverage - options, margin, futures contracts, selling short - we’ll look at all of them
NO: buying/selling other than 9:30-4:00pm Mon-Friday (when markets are open).
U.S. stocks only (although U.S. mutual funds may have foreign positions)