FOCUS QUESTIONS FOR THIS SECTION
How do investors decide when and how to buy and sell investments?
How do investors construct and maintain an investment portfolio?
Section 6: Portfolio Management
SECTION DESCRIPTION
An investment portfolio provides the big picture of stocks, bonds, mutual funds, cash accounts, and real property owned by any investor. In these lessons, students plan to make their investments grow by learning to manage risk; identifying whether to buy, sell or hold investments; and diversifying their portfolio to endure fluctuations in the marketplace.
LESSON OBJECTIVES
Define the purpose of an investment as making money grow.
Use the Rule of 72 to approximate the time or interest rate of an investment needed to double an amount of money earning compound interest.
LESSON OBJECTIVE
Give a definition of diversification. Understand the different ways a portfolio can be diversified.
Relate risk to a diversified portfolio. Explain making the decision to buy, sell, or hold an investment.
LESSON OBJECTIVES
Find financial information about an investment. Use financial information to make the decision to buy, sell, or hold an investment.
Rank investments based on risk. Justify the importance of tracking investments.
LESSON OBJECTIVES
Track an investment using technology. Seek media sources to explain why an investment may increase or decrease in value.
Decide what factors are important when considering to participate in a Dividend Reinvestment Plan.
LESSON OBJECTIVES
Create a diversified portfolio based on research. Justify an investment decision based on research.