Teaching the Production Possibilities Curve with the American Experience of World War II (Kyer & Maggs)May 27, 2021
Getting Your Students to be Dynamic: Lesson and Web App about Market Dynamics in the Long-Run (White & Wagner)May 27, 2021
In this paper, we present an application where advanced undergraduate students can solve the expected utility portfolio model with a risk-free asset and a risky asset with both up and down returns in the stock market. With real stock market data, we use Excel Solver to find the portfolio decision and study how it changes when considering assets with different returns. Finally, we test students’ portfolio decisions and their degree of risk aversion using different utility functions.