Benchmark #2: Build a Diversified Investment Strategy

Objective: Now that you have created a portfolio using individual companies, you will take the next step and learn how investors balance **risk, growth, and stability** through diversification. You will need to add 7 more companies to your portfolio and having a total of 13 companies.

Step 1: Review Your Original Portfolio

Look back at the companies you selected in your safe picks, risky picks, growth pick and think about:

• Which industries appear more stable?
• Which companies seem more unpredictable?
• Which companies might still exist and grow in 10 years?

Step 2: Create a Balanced Portfolio Plan

• Using your original company choices, build a portfolio using percentages that total 100%. Your portfolio must include:
  • 3 More Safe Investments
  • 2 More Growth Investments
  • 1 More Risky Investment
  • 1 New Cash or Saving 

Requirements

• Assign a percentage to EACH company
• Your percentages must total exactly 100%
• Explain why you gave each company that percentage

The difference between Benchmark #1 and Benchmark #2 is the Portfolio Breakdown Page. Please read all directions for this Benchmark. Here is the example of the Breakdown Page.

Step 3: Create a Portfolio Breakdown Page

On the Portfolio Breakdown Page Tab of your document. For each company include:

• Percentage of Portfolio
  • Example: “I invested 20% in Apple.”
• Explanation: Use sentence starters such as:
  • “I gave this company a larger percentage because…”
  • “I only invested a small amount because…”
  • “This investment balances my portfolio by…”
• Source: 1 recent news (maximum of 24 hours) headline about the company. Make sure add source (bibliography website link)