Day 55

Lesson Objectives

  • Explain how investing builds wealth and helps meet financial goals.
  • Examine the relationship between diversification and risk.
  • Identify regulatory agencies and their functions.

Assignment 8.1.4

  1. Watch Video 1.2
  2. Record the missing words from pages 165-167 of the textbook as they pop up on the left side of the video screen by filling in this form.  (pages 165-167) .
  3. Discussion Questions:
    1. Explain how diversification helps to protect your wealth.
    2. Explain what risk-return ratio is.
    3. Explain what the liquidity of an asset refers to.

Assignment 8.1.5

  1. In your Personal Finance Journal-C8 file in your Chapter 8 folder, complete the next row in the table by answering the question listed.