7.3 Learning Assessment

What is Diversification of Assets?

• It is a way to minimize risk when investing money (Risk Management & Insurance, 12)
• To diversify your assets, you take money and invest in many different things

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Why Diversify Your Assets?

• You are less likely to lose your money (Risk Management & Insurance, 12)
• It provides potential to increase returns for the level of risk you choose (Risk Management & Insurance, 12)
• It has potential to offset poor performance in your portfollio (Risk Management & Insurance, 12)

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My Investment Portfolio

• While I am still young, I will probably invest in shares of companies that I think will do well to earn more money and set myself up for the future EX: google, Apple, etc.(High Risk)
• When I near retirement I plan to stop investing in the stock market and instead start investing in bonds to prepare for retirement(Medium Risk)
• When I am retired, I am going to put my money into savings accounts so I don't lose money (Low risk)

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