USING EDUCATIONAL GAMES IN LEARNING OF CLASSICAL FINANCIAL MODELS

Abstract

In order to integrate Serbian financial market in to EU system, it is necessary to perform structural changes. This market is highly undeveloped for the time being. In order to prosper, one of the main requests is to work continuously on raising the education level in regard to financial markets. This paper presents educational games that are created as an aiding tool in classes on classical finances (Markowitz model and diversification, method of capital evaluation – CAPM). Game for Markowitz model and diversification was conceived as simulation of financial market, where students participate in that market with their own virtual capital. Students are building their portfolio in real time, and for decision making purposes they use methods and techniques from the given lesson. Same platform is used for Markowitz as well as for CAPM, as unique simulation of business on the market and basis for application of given models. The purpose of this game is to improve the overall understanding of the area of classical finances by using the approach of situation learning. This game can be used in two different ways, as a tool for aid in learning and also as a tool for evaluation.