High School · Grades 9–12 · Individual or teams · 45–60 minutes
Black Swan Stress Test
Quantify downside risk and revise allocations.
StockSt uses fictional currency and simulated shares for education only. This is not investment advice.
Setup
- Give each student or team a portfolio.
- Reveal three severe but fictional scenarios: a major celebrity exits public life; an entire category loses popularity; and a broad market downturn reduces all shares by 20%.
- Students calculate the portfolio value before the event and after each event, the maximum drawdown, and the largest losing position.
- Students propose one allocation change to reduce future downside.
- Rule: students may not simply sell everything. They must retain a diversified portfolio and explain the tradeoff.
Scoring
Score the accuracy of the calculations, the quality of the proposed allocation change, and the clarity of the tradeoff explanation.
Teacher debrief
Ask, “Which scenario hurt most, and what does that say about your portfolio?” Discuss the tradeoff between lowering risk and giving up potential return.