VIDEO: What is Investment Risk?
In the prompt, your decision was likely influenced by how much risk you were willing to take. Learning to manage your risk is an important part of creating an investing strategy that works for you. Watch this video to learn about effective risk management strategies for investing. Then, answer the questions on your worksheet.

VIDEO: The Power of Diversification
Let’s take a closer look at the second strategy mentioned in the previous video to manage investment risk: diversification. Watch this video to learn about the difference between diversifying by asset class and diversifying across investments. Then, answer the questions on your worksheet.

If time remains, continue watching the Broken Eggs documentary (start at 13:00).

Learning Targets:

• I can explain what risk is and its role in investing.
• I can analyze effective strategies to manage investment risk such as investing early and diversification.