PFEG - Balancing Risk and Reward

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

Mathematical Strand

Financial Maths

Prior knowledge

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

Relevance to Core Maths qualifications

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

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.


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

Relevant digital technologies

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

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.


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