Section 1 - Instruction

Let's do a quick review. Your personal risk tolerance—shaped by your age, goals, and emotions—should guide your investment choices. This helps you decide between strategies like picking individual stocks or buying broad index funds.

Engagement Message

Let's practice applying these ideas. Are you ready?

Section 2 - Practice

Type

Sort Into Boxes

Practice Question

Let's categorize the key features of index funds versus picking individual stocks. Sort these attributes into the correct boxes.

Labels

  • First Box Label: Index Fund
  • Second Box Label: Individual Stock

First Box Items

  • Low fees
  • Instant diversification
  • Passive strategy
  • Matches the market

Second Box Items

  • High research
  • Concentration risk
  • Active strategy
  • Aims to beat market
Section 3 - Practice

Type

Swipe Left or Right

Practice Question

Let's match the investor to their likely investment choice. Swipe each description to the best-fitting strategy.

Labels

  • Left Label: Prefers Index Funds
  • Right Label: Prefers Stocks

Left Label Items

  • An investor with little time for research.
  • Someone who wants to minimize fees and complexity.
  • A person who prioritizes broad diversification.
  • A beginner who wants a simple, effective strategy.

Right Label Items

  • An investor who enjoys analyzing company financials.
  • Someone willing to take on higher risk for higher potential reward.
  • A hobbyist who loves tracking specific industries.
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