3.5 EXIT TICKET- Managing Risk Exit Ticket

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1. All of the following are strategies to reduce risk EXCEPT…

• Holding your investments for at least five years
• Making sure your investments are diversified
• Hiring an investment manager who you think can beat the market
• Investing small amounts of money over longer periods of time

2. Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because…

• It allows your investments to earn more interest
• It keeps you from reacting to dips in the market and selling at too low of a price
• Fees are waived for investments held for over five years
• You get a bonus from the company if you invest for five years

3. Which of the following is an example of diversification?

• Putting the majority of your money into a savings account and investing the rest
• Investing different amounts of money every month
• Purchasing shares of stock in a variety of companies and industries
• Using multiple investment managers to get different opinions