Section 1 - Instruction

Let's do a quick recap. We've covered the difference between saving and investing, what asset classes are, and why diversification is so important for managing risk.

Engagement Message

Now, let's apply these core concepts to a few scenarios. Are you ready to begin?

Section 2 - Practice

Type

Sort Into Boxes

Practice Question

Let's start with the basics. Sort these terms into the correct categories based on whether they relate more to saving or investing.

Labels

  • First Box Label: Saving
  • Second Box Label: Investing

First Box Items

  • Bank account
  • Low risk
  • Short-term goals
  • Beats inflation

Second Box Items

  • Stocks & bonds
  • Higher risk
  • Long-term growth
  • Compound interest
Section 3 - Practice

Type

Multiple Choice

Practice Question

An investor puts their money into stocks from different industries, bonds from different governments, and some real estate. What key principle are they applying?

A. Market timing
B. Asset concentration
C. Diversification
D. Saving for safety

Suggested Answers

  • A
  • B
  • C - Correct
  • D
Section 4 - Practice

Type

Fill In The Blanks

Markdown With Blanks

Let's connect the dots between concepts. Fill in the blanks to complete the statement:

To achieve [[blank:diversification]], an investor should own different [[blank:asset classes]], because this helps [[blank:reduce]] the overall risk in their portfolio.

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