In Chapter 10 you learned about two different ways to learn about financial uncertainty. In this interactive element you have the opportunity to experience the experiment described in chapter 10 and to play an investment game. If you choose to experience the experiment, you should click the “experiment” button, and then choose the experimental condition that you would like to experiment, either “experience” or “description”. If you choose to play the investment game, choose “game”, and then select one of the three markets available. Keep investing for several periods, and you will see how well you have performed relative to other investment heuristics.
You have a portfolio of $100. In a series of monthly periods, you will have to allocate your portfolio between two options, a safe bank deposit that pays 0.25% monthly rate of return and a risky option. You make your allocation using the slider below. In each period, you will see the share price of the risky option (left graph), your portfolio (middle graph), and your earnings (right table). The graphs and table will grow across investment periods. The data corresponds to true a true market, but we have changed the date so you will not guess which market it is. Now, make your first allocation and click “invest”.
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