Does A Trading Simulation Exercise Enhance Financial Learning?

Abstract

This study investigates whether a bond trading simulation enhances student learning. Using traditional instructional methods, two groups of students are taught the basic principles of bond valuation.  One of the two groups also participates in a simulation exercise.  Both groups are given a test to assess their learning.  The study does not find evidence that a bond simulation exercise has any significant impact on student learning, as measured by the test.  The study, however, does find a significant relationship between a student’s GPA and his/her performance on the test.