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Part II: Diversification of Investments: Do I need more than one type of investment? Background: The purpose of diversification in investment is to manage risk
Part II: Diversification of Investments: Do I need more than one type of investment? Background: The purpose of diversification in investment is to manage risk by investing in a variety of options of differing risk levels. People choose their diversification based on a variety of factors such as risk aversion, age, time to recover from fluctuations, location of investment (domestic v international investments). Directions: take the quiz linked below and use your results to answer the questions that follow. A. Go to https://pfp.missouri.edu/research_IRTA.html and take the Investment Risk Tolerance Assessment. B. Paste a screenshot of your score level here C. Do you agree with your score on the assessment? Why or Why not? D. Based on your score, what type of investment(s) do you think would be best for you? E. If you were given $10,000 to invest, what investment options would you chose based on your score? What percentage of the $10,000 would you place in each option
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