Lesson 4: Managing Risk
Duration of Days: 0.5
Lesson Objective
Explain what risk is and its role in investing
Analyze effective strategies to manage investment risk such as investing early, diversification, and dollar cost averaging
How risky of an investor are you?
If your friend asked you to invest $500 into his/her new company (and you had the funds) to help get it off its feet, would you? Why or why not?
Risk
Risk Assessment
Risk Tolerance
Dollar Cost Averaging
Diversification
1b: Discuss how a person’s risk tolerance influences their investment decisions
3a: Discuss the advantages and disadvantages of investing in riskier assets
6c: Suggest an appropriate asset allocation for a very risk averse person versus a very risk tolerant person
DOK 2 - Dollar Cost Averaging - Converting information from one form to another
Calculate the impact of using dollar cost averaging in hypothetical scenarios and by using the real historical performance of an index fund
Visuals
Roleplay
Current trends
Discourse
Articles
EdPuzzle
Ngpf exit ticket
NGPF
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NGPF Curriculum Crosswalk_Connecticut Standards for Personal Financial Management and Financial Literacy
https://docs.google.com/document/d/1mLCswzLA8iEiXA1QXO1TviXvxw51TYgsl8vsQh5m1EI/edit?tab=t.0