Prompt: Provide personal investment advice to your friend/colleague/parent and convince them that your suggested investment strategy is mostly likely to generate them the best returns. Your explanation should address the following:

• What is the stock market? How does investing in the stock market generate returns?
• What is compound growth? Explain how even small investments while you're young can create large returns if you hold them long enough.
• Why is beating the market so hard (efficient markets theory)?
• What is actively managed investing? What is passive investing? Which is more expensive? Which provides better returns? Explain what John Bogle calls the "relentless rules of humble arithmetic."
• Describe the relationship between risk and returns. How should your investment strategy (stock and bond/low risk fund allocation) change depending on when you need the money (short vs. long time horizon, maybe as you age)?