Rice University



Economics 446 Stock Market Project

-Wallstreet Survivor Information

Use the Fantasy Stock Market Game and Free Online Paper Trading site at:



To get you started, here are few facts about :

. U.S. stocks only with real-time bid/ask fills.

. The profit and loss pages are streaming, so you don't need to wait until end of day settlement to review values and rankings.

. All accounts start with $100,000 and have a 25% position limit, and you can read the other rules online.

. Perpetual trading, so your group members can start trading as soon as they register and they will have the account for as long as they want.

. Accounts are not turned off--so you will need the print the rankings the dates that you want to evaluate their progress.

. To view your club rankings, you will have to register an account for yourself using the same PROMO CODE as mentioned above. Then, when you click on the link to "View My Ranking" you will be able to view rankings by Month, by Week, or by GROUP.

. If any of your group members register with the incorrect PROMO CODE, they can always edit their code in the "Edit My Profile" link.

. Only group members that made at least 1 trade will appear on your rankings under "My Group".

-Economics 446 Stock Market Project

You will be forming a portfolio of the following energy stocks (thanks to Kenneth

Medlock for his industry expertise in selecting the companies):

• Natural Gas – El Paso Corporation (NYSE: EP) (Recovering nicely from the

2000-2001 debacle… finally gone back to basics – pipes and production –

something my group said from the get go in advising to stay out of the power

market); Chesapeake and Anadarko are also great ones to consider.

• Solar – SunTech Power (NYSE: STP) (Don’t know a lot about this one. Solar

companies tend to rise and fall fairly rapidly, but this one at least has a global

presence.)

• Coal – Peabody Energy (NYSE: BTU) (World’s largest coal company, Quintana

Minerals is another one)

• Oil – ExxonMobil (NYSE: XOM) (The biggest, and lots of interesting things

going on with Venezuela right now. Of course, Shell, Chevron and BP all work

as well. In fact, each of these companies is also increasingly getting into natural

gas.)

• Biofuels – Archer-Daniels Midland (NYSE: ADM) (Very large ag company…

but also the largest beneficiary of government subsidies for corn-based ethanol…

so much for those subsidies helping the small poor farmer.)

• Wind – AES Corporation (NYSE: AES) (A global energy company that is very

involved in Wind. They are also involved in other aspects of energy delivery as

well.)

Your initial investment is $100,000 in virtual cash. You can utilize any forecasting and

econometric modeling approach you wish. Please document what methods you have

used and how they have informed you in making your trading and portfolio composition

decisions.

This is 10% of your final grade. At the end of the semester I will evaluate your

performance based on how well you have utilized the methods we have discussed in this

class as well as your ending (April 23, 2010) valuation of the portfolio.

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