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Risk Profile Quiz

Different investment options are designed to meet a variety of individual needs and preferences. The following brief quiz is designed to explore your attitude towards risk, one of the most important factors to consider when choosing an investment. It is not intended to replace the professional advice of a qualified financial adviser. Simply answer each question with the statement that best describes your response to the situation described.

What is your primary objective in investing?
  1. To keep my principal completely safe.
  2. To keep my money reasonably safe, while earning a reasonable rate of return.
  3. To keep my money somewhat safe, while earning a high rate of return.
  4. To make my money grow as fast as possible.
You buy a stock that doubles in value in the first six months. What do you do?
  1. Sell it. You've doubled your money.
  2. Sell half - no matter what happens to the investment you can't take a loss.
  3. Keep the stock. Maybe it still has some growth to go.
  4. Buy more.
You buy a stock that loses 25% in value in the first month. What do you do?
  1. Sell it. You can't afford to lose more.
  2. Hold a bit longer. It's making you nervous, but you know stocks fluctuate.
  3. Wait it out. It'll probably rebound.
  4. Buy more. It was a good investment at the original price - it's an even better buy now.
You have won a local contest and have four choices. Would you take:
  1. $1,000 in cash.
  2. A 50% chance at $4,000.
  3. A 20% chance at $10,000.
  4. A 5% chance at $100,000.
How do you feel about lotteries?
  1. I never buy a ticket. The odds against winning are too great.
  2. I'll buy a ticket once in a while, when the jackpot is really big.
  3. I buy a ticket every few weeks.
  4. Lotteries are my "retirement fund." I never miss a draw.

 


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