Matching Portfolio Risk to Investor Preferences

Supplemental Activity 2
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20 MIN(S)

Use the resource to connect risk tolerance with portfolio composition. Have students read the article to examine how risk-based funds may differ and discuss why investors with different goals or circumstances might select different investment mixes. Reinforce that an investor’s preferred level of risk is only one consideration in determining an appropriate allocation.

Resources

Get Into Your Comfort Zone: Risk-Based Funds