Investment risks and rewards
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Introduction
There are both risks and rewards associated with all investments. In this activity, students explore different investment asset classes and interpret data to draw conclusions about the relationship between risk and reward. They apply their learning to develop investment advice for people with different circumstances.
Achievement standard
By the end of Year 9, students explain the role of Australia’s financial sector and its effect on economic decision-making by individuals and businesses. They explain the interdependence of participants in the global market and the effect on economic decision-making. They explain the reasons for trade and Australia’s pattern of trade with Asia. They explain why businesses seek to create and maintain a competitive advantage. Students explain how individuals and businesses manage consumer and financial risks and rewards.
Students develop and modify questions to investigate an economic and business issue. They locate, select and analyse information and data from a range of sources. They interpret and analyse information and data to explain economic trends and cause-and-effect relationships, and identify consumer and financial impacts. They develop a response to an economic and business issue, taking account of economic, business or financial factors. They evaluate a response using criteria and make decisions about how it is to be implemented. Students use economic and business knowledge, concepts and terms to develop descriptions, explanations and arguments that acknowledge research findings.
Content descriptions
Economics and Business Knowledge and Understanding
How individuals and businesses manage consumer and financial risks and rewards. (AC9HE9K05)
Economics and Business Skills
Locate, select and analyse information and data from a range of sources. (AC9HE9S02)
Interpret information and data, explaining economic and business issues, trends and economic cause-and-effect relationships, and make predictions about consumer and financial impacts. (AC9HE9S03)
Develop and evaluate a response to an economic and business issue, using cost-benefit analysis or criteria to decide on a course of action. (AC9HE9S04)
Create descriptions, explanations and arguments, using economic and business knowledge, concepts and terms that incorporate and acknowledge research findings. (AC9HE9S05)
Student learning resources
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Investment risks and rewards
Investment returns
Investment risks and rewards
Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group. If you assign this activity to a class, your students will be assigned all student resources on their 'My learning' page. You can also hand-pick the resources students are assigned by selecting individual resources when you add a work item to a class in 'My classes'.
- As a class, read the explainer. Define and discuss the key terms.
Key terms
- Risk
- Reward
- Defensive assets
- Growth assets
- Risk tolerance
- Students individually complete the worksheet. They will need a copy of the data sheet.
- Use a grouping strategy to organise students into groups of 4.
Use a discussion strategy to promote collaboration and participation, such as talking cards.
- Groups discuss the following:
- Why is it important to consider the timeframe of investments?
- Why is diversification an important tools for safeguarding against market falls?
- Groups share their conclusions with the class.