Students are presented with multiple stock index funds, and must choose the fund that they believe had the highest returns over the past 10 and 20 years. They will also choose from the individual stocks listed in the table. Students are essentially calculating the returns on their index fund versus the returns on their individual stocks, and determining which performed better over the course of 10 and 20 years. Diversifying with stock index funds, rather than investing in individual stocks, is a safer way to hedge against the volatility and unpredictability of the stock market.
This activity is a simulation in my book, "You're Gonna Need a Bigger Wallet." The entire book's .pdf can be purchased at a discount from my TPT store at the following link: https://www.teacherspayteachers.com/Product/Book-About-Hands-On-Financial-Literacy-Simulations-for-Teens-Young-Adults-3047053
Instructors will receive the following:
1. Teacher instructions
2. Student instructions
3. Individual Stocks vs. Index Funds handout
4. Student sample
5. Student reflection handout
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