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Business Finance Quarter 2 Week 2

This document discusses different types of investments including: 1) Fixed income investments like bonds that provide regular income but have minimal risk of losing value. 2) Equity investments like stocks that have greater risk of losing value but also potential for higher returns. 3) Alternative investments outside of fixed income and equities like real estate, commodities, and collectibles. The document compares the advantages and disadvantages of different investment types and asks readers to consider which they would prefer based on their risk tolerance.

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Von Violo Buenavides
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606 views

Business Finance Quarter 2 Week 2

This document discusses different types of investments including: 1) Fixed income investments like bonds that provide regular income but have minimal risk of losing value. 2) Equity investments like stocks that have greater risk of losing value but also potential for higher returns. 3) Alternative investments outside of fixed income and equities like real estate, commodities, and collectibles. The document compares the advantages and disadvantages of different investment types and asks readers to consider which they would prefer based on their risk tolerance.

Uploaded by

Von Violo Buenavides
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BUSINESS FINANCE

Quarter 2 Week 2

Name: _____________ Date:

Grade and Section:

The Definition, Kinds, Advantages and Disadvantages of Investment

I. Learning Competency
Compare and contrast the different types of investments

II. Lesson Overview


An investment is an asset or item acquired with the goal of generating income
or appreciation. Appreciation refers to an increase in the value of an asset over
time. When an individual purchases a good as an investment, the intent is not
to consume the good but rather to use it in the future to create wealth. An
investment always concerns the outlay of some asset today—time, money, or
effort—in hopes of a greater payoff in the future than what was originally put in.

For example, an investor may purchase a monetary asset now with the idea that
the asset will provide income in the future or will later be sold at a higher price
for a profit.

Question: Which would you prefer, those which grow your money or those
which lose value?
The Different Types of Investments

1. Fixed Income and Equities

2. Alternatives to Fixed Income and Equities


3. Other Investment Assets

Question: Which among the investment types would you consider? Why?

III. Activities

Activity 1
Activity 2

Directions: Match the investment asset in column A with its description in


column B. Write only the capital letter.

Activity 3

Directions: Match the investment asset in column A with its


advantage/disadvantage in column B by writing the capital letter on the left
side of column A.

Reflection

1. Why would a risk-taker (likes to take risks) type of investor prefer equities
over fixed income?
2. Why would a risk-averse (likes to avoid risks) type of investor prefer fixed
income over equities?
3. If let’s say you have PHP1,000,000 today which you can invest for the next
10 years, where will you put it and why?
References

Chen, J. (2020) Investment. | Investopedia.


Retrieved from
https://www.investopedia.com/terms/i/investment.asp#:~:text=An%20invest
ment%20is%20an%20asset,the%20future%20to%20create%20wealth.

Answer Key

D, B, E, C, A
Activity 3

C, E, A, B, D
Activity 2

Answers may vary


Activity 1

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