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Portfolio Construction in Global Financial Markets

Dallas Brozik () and Alina M. Zapalska ()
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Dallas Brozik: Marshall University
Alina M. Zapalska: The U.S.Coast Guard Academy

International Review of Economic Education, 2007, vol. 6, issue 2, 79-98

Abstract: This paper presents a classroom simulation that can be used to introduce the concepts of portfolio management and asset allocation in the presence of global markets. While there are portfolio management games and stock trading games that are designed to cover an entire semester, this simulation provides a single period introduction to portfolio management. The simulation also creates an environment in which students discover how exchange rate volatility can affect investment returns of global funds.

Date: 2007
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