Spreadsheet Project

I. Topic:

Investment and Risk

II. Description:

Investment is always associated with risks - no venture can be said to be "risk free" - merely very close to it where the guarantor is a stable government. However, risks may vary depending on the investment plan that consist of different combinations of investment.

In order to paint a clearer picture of risk exposure, I designed this Investment Risk Indicator Model using Excel. This model contains three choices of investment (Cash, bonds, and stocks). Different combinations of the three choices will form different investment strategic plans (Short Term, Conservative, Balanced, Growth, and Aggressive Plan) which result in different risk grade ranging from 5-100.

Students will learn how to make a investment plan accordingly using the Risk Indicator and Planner.

III. Instructional Objectives:

1. To introduce students to investment planning and risks
2. To interpret the relationships between the risk and the investment methods: This model should be a dynamic tool that allows students to calculate, understand, observe, analyze, and evaluate investment plans.
3. To connect students' knowledge with real-world issues they are facing in the future
4. To help students explore Spreadsheets as Mindtool


IV. Assignment:

Read each worksheet carefully. Make sure you get familiar with the concepts of risk metrics and investment plans. Use this spreadsheet and resources links to find out anwers to the following questions.

1. If you are making a short-term investment plan with $59,678, how much shall you invest in the stock market?
2. If you want to have a balanced investment with $189,270, what will your investment plan look like?
3. Which investment plan have the highest risk? Why?
4. Is there any investment that has no risks? Why?
5. Can risk grade higher than 100?
6. Tell me three things you learned from this project.