Business

ASSIGNMENT FOR WEEK TEN

The Stock Market Game Conclusion

OK. You chose your stocks at the beginning of the quarter. You have collected news articles with

information that may affect your stock’s performance. Now it’s time to put it all together.

Assignment:

1. Update your portfolio value and fill in the new table.

2. Discuss the performance of your stock.

3. List the news articles you have been collection throughout the quarter and discuss their importance

to performance of your stock.

I. Update your portfolio value.

A. The current value of your portfolio is composed of two parts: the current value of the stock you

purchased plus the value of any dividends issued while you owned the stock.

If a stock split occurred while you owned the stock, it would affect both the number of shares you own

and the share price. This happens infrequently, however. Read about stock splits at

http://www.sec.gov/answers/stocksplit.htm . Even though this article claims the value of your shares

won’t change if there’s a split, this isn’t quite true. Even though you will be issued equivalent shares, the

market will react to the news of the split, which never happens without a reason.

1. Find the current price of the stock and multiply it by the number of shares you now own. This is the

current value of the stock.

2. Fill out the chart below—I have added a couple of columns. The first line is the information you

collected when you purchased the stock. The second line will summarize the changes to your portfolio

since then. In this example:

 The current price of Microsoft is 27.97 per share. My number of shares has not changed. The value of

my stock is 386.97 X 27.97 = $10,823.55.

 Microsoft’s dividend of $.08 per share will pay me $.08 X 386.97 = $30.96.

 The total value of my portfolio is $10,823.55 + $30.96 = $10,854.51

 The yield of my portfolio is the increase in value (not the total value) divided by my original

investment. Yield = increase / original investment

 My portfolio increased in value by $854.51 (Current value – original value), so the yield is

$854.51/$10,000 = 8.5%. In other words, I earned 8.5% on my original investment of $10,000 over about

two months. Not bad!

Date Company Symbol Price No. of Shares

Stock Value

Dividend per share

Dividend Value

Portfolio Value

Portfolio Yield

9/21 Microsoft MSFT 25.84 386.97 10,000

11/22 27.97 386.97 10,823.55 .08 30.96 10,854.51 8.5%

II. Discuss your portfolio’s performance in one or two narrative paragraphs.

What were some of your original assumptions and predictions? Did they turn out as you expected? Do

you know why or why not?