Title: Managing Risk—Time and Diversification (Lesson)
Course: Personal Finance - Financial Investing - Sample Syllabus - for Canvas Upload > Section: Introductory Lessons

Description: Students are introduced to investment risk—the chance of losing some or all money invested and that the actual rate of return on an investment may vary from the projected rate of return and may even be negative. Students then investigate the trade-off between the expected rate of return on an investment and the risk. Finally, they play the role of investors in a simulation that shows how time and diversification may lower risk.

- Go to https://www.stlouisfed.org/education/making-personal-finance-decisions-curriculum- unit (Making Personal Finance Decisions Curriculum Unit).
- Use “Lesson 8A: Managing Risk—Time and Diversification” (pdf) and the accompanying PowerPoint slides for Lesson 8A.