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Describe how diversifying investments in different types of financial assets can lower investment risk.
Examples
Example: Compare the risk faced by two investors, both of whom own two businesses on a beach. One investor owns a suntan lotion business and an umbrella business. The other investor owns two suntan lotion businesses.Clarifications
Clarification 1: Instruction includes understanding why a financial advisor might encourage a client to include stocks, bonds, and real estate assets in his or her portfolio.General Information
Subject Area: Social Studies
Grade: 912
Strand: Financial Literacy
Date Adopted or Revised: 05/24
Status: State Board Approved
Related Courses
This benchmark is part of these courses.
2102300: Economics and Personal Finance (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102305: Economics and Personal Finance Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102371: Personal Finance and Money Management (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102373: Personal Finance and Money Management Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102306: Economics and Personal Finance for Credit Recovery (Specifically in versions: 2024 and beyond (current))
2102375: Personal Finance and Money Management for Credit Recovery (Specifically in versions: 2024 and beyond (current))
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Alternate version of this benchmark for students with significant cognitive disabilities.
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