Time and Diversification

Essential Lesson 1
clock-icon
45 MIN(S)

Teach the complete lesson, including the investment simulation and diversification calculations. Review risk and expected return briefly, as students encountered these concepts in Foundations. Emphasize how combining investments can change the range of possible portfolio returns. Ask: “How can diversification help investors manage the risk-return tradeoff we studied in Foundations?”

Resources

Making Personal Finance Decisions, Lesson 8A: Managing Risk—Time and Diversification