This is the file we used today. The issue with systematic risk is a big deal. Many investors might not realize how exposed they are and feel they have a safer investment than they actually do. It is
difficult to measure systematic risk, though it is easy to talk about.
The bit at the end about risk preference and rationality (the third worksheet) is really the tip of the iceberg on these matters. One further thought is that experts are rational while non-experts are not, so get expert advice when making financial decisions. It turns out, however, that is not true. Even the experts are not rational, though they may make fewer errors than the non-expert.
Finally, if you eventually get into managing your own portfolios (say in a 401K plan) one piece of advice I learned from reading a book called A Random Walk Down Wall Street by Burton Malkiel is that if you can't sleep because you are worrying about your portfolio, then it's too risky. I don't subscribe to too much financial advise, but that one makes sense to me.
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