Investor Education - Risk Tolerance

Determine Your Risk Tolerance

Have you ever wondered what your appetite for risk is? Take this simple test to ascertain your risk tolerance!

How often do you play lotto?
Twice weekly
Once per week
Occasionally
Never
The idea of gambling at a casino is
Exciting
Appealing
Indifferent, to you
Unstable
An opportunity presents itself where you could double your money within two months. However, there is a 70% chance you could lose it all. The minimum investment is $100,000.00. You are likely to
Make the investment quickly
Take a minute to think about such an investment
Reluctant to make the investment
Shy away from such an investment
What is your perception of investing in stocks?
An opportunity to make money
Returns are not guaranteed
You could lose
Too risky to invest in
You invest $100,000.00 in a stock and it drops 2% the next day. You
Buy more when the share price is down
Hold your stock with the expectation it will go back up
Calculate your loss and worry
Call your broker and sell immediately
How would your friend describe you?
Risk Taker
Cautious
Risk averse
Mr./ Ms. play it safe
When you hear the word ‘risk’, what other word comes to your mind?
Excitement
Chance
Uncertainty
Loss
You are given $100,000.00. What do you do?
Invest it in the stock market
Invest in a unit trust product
Split it up, investing a percentage and saving the other
Put it all in a savings account