ACTIVITY 1: RISK AND RATES OF RETURN Risk (or uncertainty) refers to the variability of expected returns associated with a given investment. Risk, along with the concept of return, is a key consideration in investment and financial decisions. For this activity, identify potential rewards and risks associated with each financial asset and list them in the appropriate column.

Reward | Financial | Asset Risk

Savings account

Money Market accounts

Certificate of Deposit

Corporate Bonds

Municipal Bonds

Savings Bonds

Treasury bills,bonds and notes

Stocks

Mutual Funds

House and/or real estate

Your own business

Collectibles such as rare coins, antiques or art