Lesson 6: Don’t put all your eggs in one basket?1 Enterprise Lesson 6 Don’t put all your eggs in one basket? Aim: to understand what risk is and how to manage it Play it safe or risk it all?

Lesson 6: Don’t put all your eggs in one basket?2 For starters… >What does it mean to ‘put all your eggs in one basket’? Think of times you’ve done this. What were the outcomes? >Extension: do you agree with this saying? Why or why not?

Lesson 6: Don’t put all your eggs in one basket?3 By the end of today, you will be able to explain risk and diversification. analyse the advantages and disadvantages of diversification. come up with a trading strategy which takes risk into account.

Lesson 6: Don’t put all your eggs in one basket?4 Remember your mission This week we’ll learn ways to increase the likelihood of making a return. ?What does it mean to risk? Write your definition and give an example. ?Extension: do you like to take risks? When are they worth taking? To make as much money as possible by investing imaginary money in celebrity shares.

Lesson 6: Don’t put all your eggs in one basket?5 Risk In business risk is the likelihood of loss or less-than-expected returns. ?For homework you picked a celebrity that you wish you hadn’t invested in. Did they make a loss or less-than-expected returns? Why did you invest in them? ?Extension: compare the return on your best performing and your worst performing shares this week. What was the difference? Why did you not just invest in the better performing shares?

Lesson 6: Don’t put all your eggs in one basket?6 How can we keep risk low? Some hints! Can you lose money on cash not invested? If the price of one celebrity goes down, does that mean the price of all your investments will go down? If you invest in a celebrity with a potential dividend, can you expect a guaranteed return? How can the ‘Daq Diary be helpful?‘Daq Diary

Lesson 6: Don’t put all your eggs in one basket?7 Final hint + extension activity/homework ‘Behold the fool saith, “Put not all thine eggs in one basket” – which is but a manner of saying, “Scatter your money and your attention;” but the wise man saith, “Put all your eggs in the one basket and WATCH THAT BASKET.”’ – Mark Twain >Complete the worksheet on managing risk. This will help you make a safe (or risky? Your call!) investment.

Lesson 6: Don’t put all your eggs in one basket?8 Invest! >Use your knowledge of risk to choose celebrities that you expect will bring in a low-risk return during the week.

Lesson 6: Don’t put all your eggs in one basket?9 Celebwork Track your investments closely. At the end of the week explain whether your shares behaved as expected, or whether there were any surprises.