Portfolio%20Decisions

1
Portfolio Decisions
2
Pyramid of Risk

• Edward Jones
• What kinds of investments are go with each risk?
  Check your handout. Which ones are new for you?

3
Volatility vs. Risk

• Volatilityhow a particular investment changes
  terms of losses and gains
• Riskeven if an investment is not volatile, it
  can be risky
• examplecash is not volatile but the investment
  can
• lose value if there
  is inflation
• What is YOUR risk tolerance? This is a big factor
  in determining your investment choices!

4
Portfolio Objective Guidance Table

• What investor life stage are you in?
• What is your risk tolerance?
• Please discuss with a partner. What kinds of
  investments would you be doing? Check the
  pyramid.
• High
• Medium to High
• Medium
• Low to Medium
• Low