Stock Market Simulation

Lee, Kieran

Student Work

Stock Market Simulation

Public

The goal of this project was to learn how to trade in the stock market and to learn about what was the best way to trade in order to maximize profit while minimizing risk. Over the course of 9 weeks, the project consisted of conducting research on the stock market and conducting a 5- week simulation of trading stocks using active position trading and comparing the simulation to 4 other portfolios. One portfolio used the same stocks as the simulation but was traded passively and the other three portfolios were traded passively. Of the remaining three portfolios, two portfolios were indices and one portfolio was a mutual fund. At the end of the simulation, each portfolio had a positive return. In the order of the highest to lowest return, the passively traded portfolio had a return of 11.86%, the simulation had a return of 9.20%, the growth mutual fund had a return of 7.74%, and finally the two indexes had returns of 2.78% and 2.65%. This experience will help the project’s participant become more familiar and experienced with the stock market.

This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

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