G11 math sub plan 2

The Stock Market Simulation: A One-Day Statistics and

Finance Project for G11 (80-minute Block)
Calling all aspiring financial analysts! In this project, you'll put your statistical knowledge and
financial understanding to the test by simulating real-world stock market behavior within a
single class period.

Project Goal:

 Apply statistical concepts like data analysis, probability, and risk assessment to understand
and simulate stock market fluctuations.
 Develop basic investment strategies and analyze their performance within a simulated
environment.

Materials:

 Spreadsheet software (e.g., Microsoft Excel, Google Sheets) with access to the internet
 Access to historical stock market data (various online resources provide free data)
 Optional: Calculator

Project Steps:

1. Introduction and Research (20 minutes):

 Teacher Introduction (5 minutes): Briefly introduce the project, its goals, and the
importance of financial literacy.
 Research and Understanding (15 minutes): Students use class computers and the internet
to research the basics of the stock market, including key terms like stocks, shares, and
market indices. They explore factors that influence stock prices (e.g., company performance,
economic news, investor sentiment) using resources like Investopedia
(https://www.investopedia.com/).

2. Data Acquisition and Analysis (30 minutes):

 Choosing data (5 minutes): As a class, discuss and select a specific stock or a market index
for the simulation.
 Data download (5 minutes): Students use online resources like Yahoo Finance
(https://finance.yahoo.com/) or Google Finance (https://www.google.com/finance/?hl=en)
to download historical price data for the chosen asset over a specific period (e.g., past year)
into their spreadsheets.
 Data organization and analysis (20 minutes): Students import the downloaded data into
their spreadsheets, organize it by date and price, and calculate additional statistics like daily
change, percentage change, and rolling averages (e.g., moving average). They create basic
charts and graphs to visualize price movements and identify trends or patterns.
 3. Simulation and Strategy Development (20 minutes):

 Simulation introduction (5 minutes): The teacher explains the concept of simulating market
fluctuations and the limitations of this simplified model.
 Strategy development (15 minutes): Based on their data analysis and market
understanding, students work in pairs or small groups to propose different investment
strategies (e.g., buy-and-hold, value investing, technical analysis). They calculate potential
returns and risks associated with each strategy using their understanding of basic statistics
and probability.

4. Presentation and Reflection (10 minutes):

 Group presentations (5 minutes): Each group or pair chooses a spokesperson to present

their chosen asset, data analysis, and proposed investment strategies to the class.
 Class discussion and reflection (5 minutes): The class discusses the challenges of predicting
market behavior, the importance of risk management in financial decisions, and the role of
statistics and mathematics in understanding financial markets.

Extension Activities (Optional - can be done outside of class):

 Research and compare different investment strategies used by professional investors.

 Explore the ethical considerations and potential risks involved in real-world stock market
participation.
 Design a more complex simulation model incorporating additional factors like economic
indicators or market sentiment analysis (can be done as homework or a separate project).

Remember:

 This project is for educational purposes only and does not constitute financial advice.
 Be aware of the limitations of your simulation and the inherent uncertainty associated with
real-world markets.
 Use your critical thinking and analytical skills to learn from this experience.
IB Learner Profile Rubric:

Exceeds Expectations Meets Expectations Approaches Needs Learner

Criteria (4) (3) Expectations (2) Improvement (1) profile traits
Demonstrates a
comprehensive Demonstrates a
understanding of key basic Demonstrates
stock market concepts Demonstrates a understanding of limited
and factors influencing solid understanding key concepts but understanding of
Market price movements. Asks of key concepts and may struggle to key concepts and
Understandin insightful questions can explain them to explain them in struggles to
g and and actively others. Participates detail. Participates participate Knowledgeabl
Research contributes to actively in somewhat in meaningfully in e, Inquirer,
(20%) discussions. discussions. discussions. discussions. Communicator
Accurately
downloads and Downloads and
Data Accurately downloads organizes historical organizes historical
Acquisition and organizes historical data, but may data with some Struggles to
and data efficiently, using require some errors, and download or Knowledgeabl
Organization clear and consistent guidance with formatting may be organize data e, Organized,
(20%) formatting. formatting. inconsistent. effectively. Thinker
Creates clear and
informative charts and Creates appropriate
graphs that effectively charts and graphs to
visualize trends and visualize data, but Creates charts and
patterns. Provides may require graphs with some
insightful analysis of guidance in errors or
Data data, identifying interpreting trends limitations, and Struggles to
Visualization potential factors or patterns. analysis of data create effective
and Analysis influencing price Provides basic may be unclear or visualizations or
(20%) movements. analysis of data. incomplete. analyze