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A web
quest designed by Beau
Zennadi
contacts: Ed Burge & Dino Ferraresi
Math Model TEKS (3)(A),
3(B), 3(C), 7(A), 7(B), 7(C)
Introduction
Suppose that you received
fifteen thousand dollars to invest in the stock market. You are required to buy
stock from NYSE, NASDAQ and Mutual Funds. You are also required to keep it for
a period of time and then sell it. Did you make a profit or incur a loss? You
are also asked to make a projection on an investment in a 401 k-plan.
Task: Create a PowerPoint
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After reading
the lesson on Investment posted on the resources, you are going to buy $15000
worth of stock from NYSE, NASDAQ and Mutual Funds, then sell it after a period
of time (six weeks or 12/15 readings). Record your data and generate graphs to
illustrate your research. Calculate the profit made or loss incurred from each
stock. Also, make a projection for a 401 k-plan based on a $50,000 salary, a
10% rate and $3000/year that is matched 100% by your employer for 20 years..
Write a conclusion using PowerPoint to present your findings.
Process
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The following steps will help you complete this project.
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1. |
Read the lesson on investment posted on the resources. Notes
should be taken to include in your final conclusion. http://stocksquest.thinkquest.org/10326/investment_lessons/index.html |
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2. |
Choose a company from each of the stock markets (NYSE, NASDAQ,
and Mutual Funds). See teacher for worksheets to record readings |
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3. |
Check the history of the companies stock for the last five
years. http://finance.yahoo.com/ |
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4. |
Buy $15000 worth of shares. It doesn’t necessarily need to be
equal invested amounts between the three companies. |
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5. |
Use this formula to calculate the number of shares
including 2% broker’s fee. # of shares = Amount
invested x (1 - 2%) divided by Price per share at first reading |
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6. |
Record 12/15 reading over a period of six weeks or less. |
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7. |
Generate a line graph for each stock using Excel. |
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8. |
Calculate including a 2% broker’s fee the net profit or the net
loss for each stock. Use this formula Selling cost = Price per share x # of shares x (1 - 2%) |
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9. |
Copy your results into PowerPoint. |
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10. |
Compare your results to investing that amount in a bank saving
that has a yield of 3%. $3000 per year for 5 years. |
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11. |
Explain the 401 k-plan,
as stated in the investment lesson. |
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12. |
Use Shared Documents or http://www.economy.com/tools/calculator/401k.asp to make a projection of a
$3000 investment/year in a 401 k-plan that has a rate of return of 10% with a
salary of $50,000 annually. Assume
the employer will match 100% the money you put in. |
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13. |
Write a conclusion about the stock market and the 401 k-plan.
Your conclusion should include notes from your readings, results from your
math computations, and discussions with your teacher. Try to find a template
on Inspiration that will suit your conclusion and enter your information.
Create an outline from it and write your conclusion using the diagram and the
outline. Copy and paste them to slides. |
Resources |
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The following list offers
possible resources that you might consider in order to complete this project.
Use any or other resources to investment and 401 k-plan.
http://stocksquest.thinkquest.org/10326/investment_lessons/index.html
http://www.economy.com/tools/calculator/401k.asp
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Evaluation |
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Your
grade for this web quest will be based on the following components:
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Excellent |
Good |
Average |
Below Average |
Try Again |
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Participation: Constructive
use of classroom time |
4 |
3 |
2 |
1 |
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Knowledge: Shows understanding of the material Able to answer questions |
4 |
3 |
2 |
1 |
0 |
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Length: Long enough to cover assigned material |
4 |
3 |
2 |
1 |
0 |
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Graphs: Easy to read |
4 |
3 |
2 |
1 |
0 |
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Selling cost: Calculations should support data |
4 |
3 |
2 |
1 |
0 |
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Profit/Loss cost: Calculations should support data |
4 |
3 |
2 |
1 |
0 |
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401 k-Plan: Explanation Projection |
4 |
3 |
2 |
1 |
0 |
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Content: Topic covered thoroughly Enough information given to understand
topic |
4 |
3 |
2 |
1 |
0 |
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Conclusion: Well written and in essay format Content of conclusion should include pros
and cons from reading material, math computations, and discussions with
teacher |
4 |
3 |
2 |
1 |
0 |
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Design: Creativity Easy to see and follow |
4 |
3 |
2 |
1 |
0 |
Now that you are introduced
to the stock market and the 401 k-plan, hopefully you will use this information
to further your knowledge of investment matter, and to make the right decision
to ensure your financial future when the occasion arises.
