ACTIVITY: Chart Your Growth (or Decline!)
We have no way to predict into the future how your specific portfolio will perform, as over a 10-year period changes in individual companies, the economy, technological advances, politics, consumer preferences, etc. can impact share prices. But, in this next section we’ll spin the Wheel of Returns and see how you fare! https://docs.google.com/spreadsheets/d/1aKhV0Wg1_Q5FQvIViTGsKPOYZawbKvgbcRJHPJxciRg/edit?usp=sharing
In your Portfolio Spreadsheet, skip column H, and then label column I “Rate of Return”
2. Start at the top row and locate your first bond fund. Your teacher will spin the wheel,https://wheelofnames.com/3gu-d84, and then you should enter the rate of return as a decimal in column H.
For example, if your first bond fund is in row 4, and your teacher says the rate of return is 6%, you will type 0.06 into cell H4.
3. Continue adding rates of return for each of your bond funds, using the numbers provided by the Wheel of Bond Fund Returns
4. At this point, you should NOT be filling in any rows for stocks
You may notice that your bond funds didn’t take many wild swings, but that might not be the case for stocks. To generate fictitious returns for your stock investments, your teacher will spin a new Wheel of Returns https://wheelofnames.com/3p2-qyr ,
5. Start at the top row and locate your first stock. Your teacher will spin the wheel, and you’ll enter the return as a decimal in column H.
For example, if your first stock is in row 2, and your teacher says the rate of return is 5.5%, you will type 0.055 into cell H2.
6. Continue adding rates of return for each of your stocks, using the numbers provided by the Wheel of Stock Returns
7. Be sure to skip the rows that have your bond funds already completed
Now that you know all of your rates of return on individual assets, let’s figure out the value of each asset at some point in the future!
8. Label column J “Closing Value”
9. Write an equation in J2 that calculates the closing value of your row 2 asset using the Total Opening Value, Rate of Return, and a term of 10 years.
10. Use this equation to calculate the closing value for each of your assets
11. In cell J20, calculate the total closing value of your portfolio.
12. In cell I20, calculate the overall return on investment over the ten years and all assets.