Get Diversified! — Reducing the Risk of Buying Stocks

Supplemental Activity 1
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15 MIN(S)

Use as a supplement to Essential Lesson 1. Assign only Part 1 of Activity 18.1 and discuss its three questions. Reinforce how spreading investments across companies of different sizes, sectors, and locations reduces exposure to individual-stock risk. Omit Part 2, which focuses on insurance.

Resources

LEI Lesson 18: Managing Risk — Activity 18.1, Get Diversified!, Part 1 (p. 314)