Risk ToleranceThis worksheet is divided into two sections:
Investment Time Horizon Section and the Risk Tolerance Section. Please answer
all questions in both sections. Then add up the points associated with your
responses and enter the totals in the total Horizon Score and Total Risk
Tolerance Score Boxes. Your recommended allocation will be based on these
scores.
Investment Time Horizon Section: 2
Questions
Risk Tolerance Section: 8 questions.
A= strongly agree,1 point. B= agree somewhat, 2
points. C= Disagree, 3 points.
1. When investing my money, preservation of
capital is most important.
A) 1 point. B) 2 points. C) 3 points.
2. I would accept a lower yield on my bond
investments in exchange for the relative safety of government securities.
A) 1 point. B) 2 points. C) 3 points.
3. I would prefer a portfolio of established,
high-quality stocks rather than emerging growth stocks which offer higher
potential return.
A) 1 point. B) 2 points. C) 3 points.
4. Share price stability is more important to me
than higher current return.
A) 1 point. B) 2 points. C) 3 points.
5. diversity within my portfolio is an important
investment consideration.
A) 1 point. B) 2 points. C) 3 points.
6. I would accept a lower current yield if I
could access my money at any time.
A) 1 point. B) 2 points. C) 3 points.
7. I would choose government bonds versus stocks
as my primary long-term investment.
A) 1 point. B) 2 points. C) 3 points.
8. I would choose any liquidity over high,
long-term total return.
A) 1 point. B) 2 points. C) 3 points.
Results: This can serve as
a guide to choosing the investment which complement your risk tolerance as well
as your financial goals.
SCORE:
