Lesson Objectives
- Evaluate investment alternatives: money markets, bonds, single stocks, mutual funds.
- Explain the Rule of 72.
Assignment IVU2.4
- Watch Video 2.1
- Record the missing words from pages 167-168 of the textbook as they pop up on the left side of the video screen by filling in this form. (pages 167-168) .
- Discussion Questions:
- Why does a CD have a slightly higher interest rate than a typical savings account at a bank?
- Which carries higher risk: money market accounts or single stocks?
- Do bonds typically yield high or low returns?
- Watch Video 2.2
- Record the missing words from pages 169-170 of the textbook as they pop up on the left side of the video screen by filling in this form. (pages 169-170) .
- Discussion Questions:
- Explain how mutual funds work.
- What is the main advantage of a mutual fund?
- What level of risk do mutual funds carry if well diversified?
Assignment IVU2.5
- In our videos today, we were presented with the standard diversification plan when it comes to choosing what/where our savings should be placed. Utilize the information you received from the videos today as well as information found on page 170 in your textbook to reaffirm your understanding of this plan.
- Create a new Google Drawing, title it Diversification Plan-(Your Initials), and move it into your Lesson 2 folder. In this drawing, create a pie chart of what this plan all entails including descriptions and percentages that represent how much goes into each part.
Assignment IVU2.6
- After completing the assigned tasks in Lesson 2 above, share your Lesson 2 folder with your teacher. These are the files you should have in your Lesson 2 Folder:
- Choosing Stocks
- Stocks vs Mutual Funds
- Diversification Plan
Lesson 2 Quiz-IVU
- Complete the Lesson 2 Quiz for the Investing Unit.