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Lesson 2: Investing in a market economy

Lesson 2: Investing in a market economy

Assessment

Presentation

Business

11th Grade

Practice Problem

Easy

Created by

Emmanuel Njoya

Used 6+ times

FREE Resource

14 Slides • 2 Questions

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Scenario 1: Risk vs. Reward

You have just inherited $5,000 and want to invest it. You have two options:

Option A: A savings account that offers 2% annual interest but is completely risk-free.

Option B: A stock in a fast-growing technology company that has seen significant growth but has also experienced sharp declines.

Which option would you choose and why?

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Explain the relationship between risk and return.

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