Financial Fitness for Life, Chapter 21: No Free Lunch in Investing
Objective
Teachers will be able to:
– Describe the difference between saving and financial investing.
– Explain the different types of assets.
– Compare rates of risk and return on a variety of different opportunities.
Standards
This video is available to view for EconEdLink members only.
In this personal finance webinar, discuss the keys to successful saving and investing via diversity and acceptable risk.
Description
An overview of Chapter 21: There’s No Free Lunch in Investing.
Risk is inherent in all investments: some cannot be controlled, others can be managed. The key is to develop a risk-reward ratio with which you are comfortable.
The greater the risk, the higher the potential reward. Given that relationship, there is no free lunch in investing. Investors who choose low risk may earn meager returns. Investors who seek higher returns through high-risk investments may suffer big losses.
In this lesson, learn about five types of risk and frequently-used investment vehicles.