Page 44 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five

Activity 4.3
To guide students through the process of advising Babayo on balancing

his investments in stocks and bonds, a structured activity can be
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implemented. Here are the step-by-step procedures to ensure students
understand the concepts and can apply them effectively.

1. Introduction to the activity: Provide a brief overview of Babayo’s
scenario, emphasizing the need for a balanced investment strategy
and introduce key terms such as stocks, bonds, nominal value,

coupon rate, risk tolerance, and diversification.

2. Research phase: Equip students with knowledge about stocks,
bonds, and investment balancing strategies, and assign students to
research the characteristics, risks, and returns of stocks and bonds

using textbooks, financial websites, and academic journals, and
provide access to resources such as investment guides and financial
news articles.

3. Group discussion and analysis: Analyse the collected findings

and develop a balanced investment strategy for Babayo by dividing
students into small groups to discuss their research findings;
instruct each group to analyse the advantages and disadvantages

of investing in stocks and bonds, considering Babayo’s goals,
risk tolerance, and time horizon and guide the groups to create
a balanced investment strategy, including recommended asset
allocation and diversification tactics.

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