Everfi Future Smart Answers Module 6 Pie Chart
What is Everfi Future Smart?
Everfi Future Smart is an online financial education program aimed at high school students. The program consists of nine modules that cover a range of personal finance topics such as budgeting, saving, investing, and credit. The program is designed to be interactive and engaging, with videos, games, and quizzes to reinforce the learning material.
Module 6: Investing
Module 6 of Everfi Future Smart focuses on investing. Students learn about the different types of investments, how to create a diversified investment portfolio, and the risks and rewards of investing. One of the key tools used in this module is the pie chart.
The Pie Chart
The pie chart is a visual representation of a portfolio's asset allocation. It shows the percentage of the portfolio that is invested in each asset class, such as stocks, bonds, and cash. The pie chart is an important tool because it helps investors ensure that their portfolio is diversified, which helps to reduce risk.
Using the Pie Chart in Everfi Future Smart
In Module 6 of Everfi Future Smart, students are asked to create their own investment portfolio using a pie chart. They are given a list of asset classes and must allocate a certain percentage of their portfolio to each one. The program then calculates the risk profile of their portfolio based on their allocation.
The Importance of Diversification
The pie chart is a tool that helps investors ensure that their portfolio is diversified. Diversification is important because it helps to reduce risk. By investing in a variety of asset classes, investors can spread their risk across different investments. This helps to reduce the impact of any one investment on their portfolio.
Conclusion
The pie chart is an important tool in Module 6 of Everfi Future Smart. It helps students learn about asset allocation and diversification, which are key concepts in investing. By using the pie chart, students can create a diversified investment portfolio that helps to reduce risk and increase the likelihood of achieving their financial goals.