PFEG - Balancing Risk and Reward

This task will help students make decisions about investments by assessing possible risks and rewards.

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Mathematical Strand

Financial Maths

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Prior knowledge

Calculating profit and loss, using a spreadsheet to model simple financial contexts.

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Relevance to Core Maths qualifications

  • AQA
  • C&G
  • Eduqas
  • Pearson/ Edexcel
  • OCR

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Suggested approaches

The tasks are suitable for small group discussion and modelling using a spreadsheet.
The activity starts with a scenario of promotional T-shirts and then has a worksheet of scenarios suitable for small group work. There is the opportunity for whole-class debate around weighing up risk and reward when making decisions about investments.

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Resources/documentation

There are ‘volunteer’ notes, a PowerPoint and a worksheet of scenarios for group exploration.

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Relevant digital technologies

Students will need calculators and/or spreadsheets to calculate possible rewards and losses.

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Possible extensions

Students could investigate their own possible investments: purchasing a car/bike; going to university or working and studying with the Open University, for example; living at home or living independently; saving for a particular purchase compared with using credit etc.

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Acknowledgement

From Your Financial Future level 3: Unit 3: Activity 9, developed by Tower Hamlets Business Education Partnership, sponsored by Bank of America Merrill Lynch, available at https://thebp.org/your-financial-future-level-3/