Using a Modified Dividend Discount Model for Stock Market Games
Yu, Geungu, Jean-Claude Assad, and Phillip Fuller. “Using A Modified Dividend Discount Model For Stock Market Games.” Southwestern Economic Review, (Spring 2017) 44 (1) :29-42
14 Pages Posted: 1 Jun 2017
Date Written: NOV 1, 2016
This paper presents a dividend discount model (DDM) modified for high-growth stocks as an investment decision tool for participants of stock market games. The participants input data from Value Line Investment Survey reports to the modified DDM for making their investment decisions. Comparing pre- and post-tests of economic and financial literacy on participants conducted during a stock market game period, the authors of this paper find anecdotal evidence that the performance improvement of the experimental group is statistically significant at 0.1 level, confirming the usefulness of the game for improving economic and financial literacy.
Keywords: financial literacy, stock market game
JEL Classification: A20, G11, l25
Suggested Citation: Suggested Citation