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Name:
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E-mail:
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1)
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In general, how would your best friend describe you
as a risk taker?
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(Select One)
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a. A real
gambler
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b. Willing to
take risks after completing adequate research
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c. Cautious
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d. A real
risk avoider
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2)
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You are on a TV game show and can choose one of the
following. Which would you take?
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(Select One)
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a. $1,000 in
cash
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b. A 50%
chance at winning $5,000
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c. A 25%
chance at winning $10,000
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d. A 5%
chance at winning $100,000
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3)
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You have just finished
saving for a "once in a lifetime" vacation. Three weeks before you plan to leave, you
lose your job. You would:
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(Select One)
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a. Cancel the vacation
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b. Take a
much more modest vacation
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c. Go as
scheduled, reasoning that you need the time to prepare for a job search
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d. Extend
your vacation, because this might be your last chance to go first-class
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4)
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If you unexpectedly received $20,000 to invest, what
would you do?
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(Select One)
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a. Deposit it
in a bank account, money market account, or a insured CD
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b. Invest it
in safe high quality bonds or bond mutual funds
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c. Invest it
in stocks or stock mutual funds
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5)
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In terms of experience, how comfortable are you
investing in stocks or stock mutual funds?
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(Select One)
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a. Not at all
comfortable
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b. Somewhat
comfortable
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c. Very
comfortable
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6)
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When you think of the word "Risk" which of
the following words comes to mind first?
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(Select One)
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a. Loss
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b.
Uncertainty
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c.
Opportunity
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d. Thrill
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7)
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Some experts are
predicting prices of assets such as gold, jewels, collectibles, and real
estate (hard assets) to increase in value; bond prices may fall, however,
experts tend to agree that government bonds are relatively safe. Most of your investment assets are now in
high interest government bonds. What
would you do?
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(Select One)
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a. Hold the
bonds
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b. Sell the bonds, put half the proceeds into
money market accounts, and the other half into hard assets
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c. Sell the
bonds and put the total proceeds into hard assets
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d. Sell the
bonds, put all the money into hard assets, and borrow additional money to buy
more
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8)
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Given the best and
worst case returns of the four investment choices below, which would you
prefer?
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(Select One)
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a. $200 gain
best case; $0 gain/loss worst case
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b. $800 gain
best case; $200 loss worst case
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c. $2,600
gain best case; $800 loss worst case
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d. $4,800
gain best case; $2,400 loss worst case
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9)
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In addition to
whatever you own, you have been given $1,000.
You are now asked to choose between:
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(Select One)
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a. A sure
gain of $500
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b. A 50%
chance to gain $1,000 and a 50% chance to gain nothing
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10)
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In addition to
whatever you own, you have been given $2,000.
You are now asked to choose between:
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(Select One)
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a. A sure
loss of $500
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b. A 50%
chance to lose $1,000 and a 50% chance to lose nothing
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11)
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Suppose a relative
left you an inheritance of $100,000, stipulating in the will that you
invest All the money in ONE of the
following choices. Which one would you
select?
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(Select One)
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a. A savings
account of money market mutual fund
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b. A mutual
fund that owns stocks and bonds
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c. A
portfolio of 15 common stocks
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d.
Commodities like gold, silver, and oil
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12)
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If you had to invest
$20,000, which of the following investment choices would you find most
appealing?
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(Select One)
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a. 60% in
low-risk investments 30% in mediun-risk investments 10% in high-risk
investments
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b. 30% in
low-risk investments 40% in mediun-risk investments 30% in high-risk
investments
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c. 10% in
low-risk investments 40% in mediun-risk investments 50% in high-risk
investments
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13)
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Your trusted friend
and neighbor, an experienced geologist, is putting together a group of
investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times
the investment if successful. If the
mine is a bust, the entire investment is worthless. Your friend estimates the chances of
success is only 20%. If you had the money,
how much would you invest?
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(Select One)
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a. Nothings
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b. One
month's salary
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c. Three
month's salary
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d. Six
month's salary
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Questionnaire Scale (0-100)
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Risk Tolerance Score & Assessment
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0 - 25
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Ultra Conservative Risk Tolerance
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26 - 39
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Conservative Risk Tolerance
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40 - 48
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Moderately Conservative Risk Tolerance
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49 -61
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Moderate Risk Tolerance
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62 - 69
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Moderately Aggressive Risk Tolerance
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70 - 80
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Aggressive Risk Tolerance
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81 - 90
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Aggressive Plus Risk Tolerance
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91 - 100
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Ultra Aggressive Risk Tolerance
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About the Grable & Lytton Risk Assessment
Questionaire
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The Grable &
Lytton Risk Assesment Questionaire was created in 1999 by Dr. John Grable nad
Dr. Ruth Lytton. It has been in
continuous use since then, has been taken by investors hundreds of thousands
of times, and has been repeatedly studied for validity. (Questionaire Source: Grable,J. E., & Lytton, R. H.
(1999). Fianancial risk tolerance revisited: The development of a risk assessment
instrument. Financial Services Review,
8, 163-181
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