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InvestmentRiskToleranceQuiz:PersonalFinance
InvestmentRiskToleranceQuiz
Wanttoimproveyourpersonalfinances?Startbytakingthisquiztogetanideaofyourrisk
toleranceoneofthefundamentalissuestoconsiderwhenplanningyourinvestmentstrategy,
eitheraloneorinconsultationwithaprofessional.Choosetheresponsethatbestdescribesyou
thereareno"right"or"wrong"answers.Justhavefun!
Whenyou'redone,clickonthe"ViewResults"buttontoseehowyou'redoing.
Ifyouwouldliketoscoreyourself,usethisscoringgrid.
Note:Thisquizwasdevelopedbytwouniversitypersonalfinanceprofessors,Dr.Ruth
LyttonatVirginiaTechandDr.JohnGrableattheUniversityofGeorgia.Bytakingthis
quizyouwillbecontributingtoastudyonmeasuringfinancialrisktolerance.Your
resultswillberecordedanonymously.Wearenotcollectinganyidentifying
information.
InvestmentRiskToleranceQuiz
1.
Ingeneral,howwouldyourbestfrienddescribeyouasarisktaker?
Arealgambler
Willingtotakerisksaftercompletingadequateresearch
Cautious
Arealriskavoider
2.
YouareonaTVgameshowandcanchooseoneofthefollowing.Which
wouldyoutake?
$1,000incash
A50%chanceatwinning$5,000
A25%chanceatwinning$10,000
A5%chanceatwinning$100,000
3.
Youhavejustfinishedsavingfora"onceinalifetime"vacation.Threeweeks
beforeyouplantoleave,youloseyourjob.Youwould:
Cancelthevacation
Takeamuchmoremodestvacation
Goasscheduled,reasoningthatyouneedthetimetoprepareforajobsearch
Extendyourvacation,becausethismightbeyourlastchancetogofirstclass
4.
Ifyouunexpectedlyreceived$20,000toinvest,whatwouldyoudo?
Deposititinabankaccount,moneymarketaccount,oraninsuredCD
Investitinsafehighqualitybondsorbondmutualfunds
Investitinstocksorstockmutualfunds
5.
Intermsofexperience,howcomfortableareyouinvestinginstocksorstock
mutualfunds?
Notatallcomfortable
Somewhatcomfortable
Verycomfortable
6.
Whenyouthinkoftheword"risk"whichofthefollowingwordscomesto
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InvestmentRiskToleranceQuiz:PersonalFinance
mindfirst?
Loss
Uncertainty
Opportunity
Thrill
7.
Someexpertsarepredictingpricesofassetssuchasgold,jewels,
collectibles,andrealestate(hardassets)toincreaseinvaluebondprices
mayfall,however,expertstendtoagreethatgovernmentbondsare
relativelysafe.Mostofyourinvestmentassetsarenowinhighinterest
governmentbonds.Whatwouldyoudo?
Holdthebonds
Sellthebonds,puthalftheproceedsintomoneymarketaccounts,andtheotherhalfinto
hardassets
Sellthebondsandputthetotalproceedsintohardassets
Sellthebonds,putallthemoneyintohardassets,andborrowadditionalmoneytobuy
more
8.
Giventhebestandworstcasereturnsofthefourinvestmentchoicesbelow,
whichwouldyouprefer?
$200gainbestcase$0gain/lossworstcase
$800gainbestcase$200lossworstcase
$2,600gainbestcase$800lossworstcase
$4,800gainbestcase$2,400lossworstcase
9.
Inadditiontowhateveryouown,youhavebeengiven$1,000.Youarenow
askedtochoosebetween:
Asuregainof$500
A50%chancetogain$1,000anda50%chancetogainnothing
10.
Inadditiontowhateveryouown,youhavebeengiven$2,000.Youarenow
askedtochoosebetween:
Asurelossof$500
A50%chancetolose$1,000anda50%chancetolosenothing
11.
Supposearelativeleftyouaninheritanceof$100,000,stipulatinginthewill
thatyouinvestALLthemoneyinONEofthefollowingchoices.Whichone
wouldyouselect?
Asavingsaccountormoneymarketmutualfund
Amutualfundthatownsstocksandbonds
Aportfolioof15commonstocks
Commoditieslikegold,silver,andoil
12.
Ifyouhadtoinvest$20,000,whichofthefollowinginvestmentchoices
wouldyoufindmostappealing?
60%inlowriskinvestments30%inmediumriskinvestments10%inhighrisk
investments
30%inlowriskinvestments40%inmediumriskinvestments30%inhighrisk
investments
10%inlowriskinvestments40%inmediumriskinvestments50%inhighrisk
investments
13.
Yourtrustedfriendandneighbor,anexperiencedgeologist,isputting
togetheragroupofinvestorstofundanexploratorygoldminingventure.
Theventurecouldpayback50to100timestheinvestmentifsuccessful.If
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InvestmentRiskToleranceQuiz:PersonalFinance
themineisabust,theentireinvestmentisworthless.Yourfriendestimates
thechanceofsuccessisonly20%.Ifyouhadthemoney,howmuchwould
youinvest?
Nothing
Onemonth'ssalary
Threemonth'ssalary
Sixmonth'ssalary
DemographicData
14.
Whatisyourgender?
SelectOne
15.
Whatisyourcurrentageinyears?
SelectOne
16.
Whatisyourmaritalstatus?
SelectOne
17.
Whatisthehighestlevelofeducationyouhavecompleted?
SelectOne
18.
Whatisyourhousehold'sapproximateannualgrossincomebeforetaxes?
SelectOne
19.
Thinkingaboutyourcurrentfinancialsituation,approximatelywhat
percentageofyourpersonalandretirementsavingsandinvestmentsarein
thefollowingcategories?(Note:Pleasecompleteeveryboxinthissection.
Forinvestmentscategoriesthatarenotselected,placeazerointhebox.
Percentagesshouldtotal100%)
%Cash,suchassavingsaccounts,CDs,ormoneymarketmutualfunds
%Fixedincomeinvestments,suchascorporatebonds,governmentbonds,orbond
mutualfunds
%Equities,suchasstocks,stockmutualfunds,directbusinessownershiporinvestment
realestate(notyourpersonalresidence)
%Other,suchasgoldorcollectibles
20.
Whoisresponsibleforinvestmentallocationdecisionsinyourhousehold?
SelectOne
ViewResults
RiskToleranceQuizSource:Grable,J.E.,&Lytton,R.H.(1999).Financialrisktolerancerevisited:Thedevelopmentofariskassessment
instrument.FinancialServicesReview,8,163181.
http://njaes.rutgers.edu/money/riskquiz/
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