3-1 Presentation - What is Risk in class presentation

1. 3-1: What is Risk?
STOCK MARKET GAME – UNIT 3: SELECTING YOUR INVESTMENTS

2. Springboard Activity
 Mark, Mathew and Gwen are great friends, but very different. They
are all in the same history class in 11th grade.
 Mark studies for weeks before every test.
 Gwen studies for two to three hours, just enough time to review
everything the teacher covered in class.
 Mathew reviews his notes the night before the test and hopes he
remembers what was covered.
 Who has the greatest risk of failing the most tests?
 Who do you predict will have the highest average? Why?

3. What is Risk?
 Risk ⎯
 exposure to the chance of injury or loss
 Conservative:
 Little to no risk of loss.
 Moderate:
 Slight risk of loss.
 Speculative:
 High risk of loss.

4. What is Risk Tolerance
 Risk Tolerance ⎯
 An investor’s ability to accept loss of some or all of the money he or
she has invested.

5. Risk Tolerance
 Risk Tolerance
 An investor’s ability to accept loss of some or all of the money he or she has invested