LESSON PLAN TITLE:  Stock market project

 

DEVELOPMENTAL MATH COURSE:  081

 

CONCEPT/TOPIC TO TEACH:

 

a)     Add, subtract, multiply, divide decimals

b)     Ratios

c)      Line and bar graphs

d)    Mean, median, mode

 

 

STANDARDS ADDRESSED:

 

a)     C-2: Number sense, mental arithmetic, estimation

b)    C-6: Visual representation of concepts

c)     C-12: Collection of real data for analysis of descriptive statistical techniques

d)    C-17: Problems related to the ordinary lives of students

 

 

GENERAL GOAL(S):

 

a)     Learn how to use Finance.yahoo.com website to gather data on stocks

b)    Learn how graph using Chart Wizard

c)     Learn how to generate a graph by hand with appropriate X- and Y-ranges

d)    Reinforce calculations of mean, median, and mode of a set of data

e)     Learn how to interpret the graphs generated

f)     Learn how to calculate gain and loss

 

 

SPECIFIC OBJECTIVES:

 

a)     ÒInvestÓ money in stocks

b)    Track closing price for 4 weeks

c)     Graph closing price of each stock for the 4-week period

d)    Calculate mean, median, and mode of closing price of each stock

e)     Calculate gain or loss of each stock

 

 

REQUIRED MATERIALS:

 

a)     Access to Internet

b)    URL to look up stock data: http://finance.yahoo.com

 

 

STEP-BY-STEP PROCEDURES:

 

a)     ÒInvestÓ $10,000 in 5-10 stocks.  Use the P/E ratio as one guideline for choosing the stocks.  Recommended P/E ratio is between 15 and 25

b)    Track the closing price of each stock for 4 weeks

c)     Organize data on two spreadsheets (see handout).  One should list each company, number of shares purchased, price per share, total price per company.  Make sure the total price adds up to between $9000 and $10,000.

d)    The other spreadsheet should list each company and the closing price per share for Monday-Friday for 4 weeks.  The stock market is not open on weekends so no data needs to be recorded for Saturday and Sunday.

e)     At the end of the tracking period, compare the closing price per share of each stock to the purchase price per share.  Calculate the gain/loss for total number of shares of each stock.

f)     Graph the closing price per share of each stock over the entire 4-week period using line or bar graphs.  We will discuss in class how to set up the graphs both manually and with Chart Wizard.

g)    Calculate the mean, median, and mode of the closing price per share for each stock.

 

 

PLAN FOR INDEPENDENT PRACTICE:

 

a)     Instructor does one example on overhead computer of collecting stock data using finance.yahoo.com website. 

b)    Students collect data outside of class.

c)     Instructor does one example on overhead computer of how to make a graph with Chart Wizard

d)    Students generate graphs in class as time permits.

 

 

ASSESSMENT BASED ON OBJECTIVES:

 

a)     Assessed using attached grading rubric

b)    Project counts as one test grade

c)     Project is assessed on accuracy of information, not on fanciness of presentation.  Students who choose to hand-write data and manually generate graphs should not be given a lower grade than those students who create computer-generated charts and graphs.

d)    Allow 4 weeks for data collection, 3 weeks to complete the project, and 2-3 weeks to grade them.  Project should be started about the 4th week of the semester.