← Investing Fundamentals

Lesson 1 of 3 · 9 min

Risk & return

Higher expected returns always come with higher risk — anyone promising otherwise is selling something.

Diversification spreads risk: many companies, sectors and countries instead of one bet.

Practice

Rank these by risk: savings account, broad index fund, single stock, lottery ticket.

Quiz

+50 pts
1. High returns with no risk are…
2. Diversification…

Optional resources

Your lesson toolkit

No purchase or partner signup is required to complete this course or earn quiz points.

These are official product links, not active affiliate links. Learnly does not currently earn a commission from them.

Bogleheads wiki

Read community-maintained guides on index investing.

Free educational resource; not financial advice.

Explore tool