FREE Investment (Risk Tolerance) Questions and Answers

Question 1

How would your best friend characterize you as a risk-taker in general?
A. A real Gambler
B. Willing to take risks after completing adequate research
C. Cautious
D. A real risk avoider

Accepted Answer

DCBA

Answer

BCAD

Answer

DACB

Answer

ABCD

Question 2

On a TV game show, you can pick one of the options below. Which one do you prefer?
A. A 5% chance at winning $100,000
B. A 25% chance at winning $10,000
C. $1,000 in cash
D. A 50% chance at winning $5,000

Accepted Answer

CDBA

Answer

ABCD

Answer

DCAB

Answer

BADC

Question 3

You recently finished setting aside money for a "once-in-a-lifetime" trip. You lose your job three weeks before you're scheduled to depart. You would:
A. Cancel the vacation
B. Take a much more modest vacation
C. Go as scheduled, reasoning that you need the time to prepare for a job research
D. Extend your vacation, because this might be your last chance to go first-class

Accepted Answer

ABCD

Answer

CBDA

Answer

BCDA

Answer

ADBC

Question 4

What would you do if you were given $20,000 to invest on the spur of the moment?
A. Deposit it in a bank account, money market account, or an insured CD
B. Invest it in safe high-quality bonds or bond mutual funds
C. Invest it in stocks or stock mutual funds

Accepted Answer

ABC

Answer

BAC

Answer

CBA

Question 5

How at ease are you with investing in equities or stock mutual funds in terms of experience?
A. Not at all comfortable
B. Somewhat comfortable
C. Very comfortable

Accepted Answer

BAC

Answer

ABC

Answer

CAB

Question 6

Which of the following words comes to mind first when you hear the term "risk"?
A. Uncertainty
B. Opportunity
C. Thrill
D. Loss

Accepted Answer

DABC

Answer

ABCD

Answer

DCBA

Answer

CBAD

Question 7

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?
A. Sell the bonds, put all the money into hard assets, and borrow additional money to buy more
B. Sell the bonds and put the total proceeds into hard assets
C. Hold the bonds
D. Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets

Accepted Answer

CDBA

Answer

ABCD

Answer

CDAB

Answer

BADC

Question 8

Given the best and worst-case returns of the four investment choices below, which would you prefer? (Select only one)
A. $200 gain best case; $0 gain/loss worst case
B. $800 gain best case; $200 loss worst case
C. $2,600 gain best case; $800 loss worst case
D. $4,800 gain best case; $2,400 loss worst case

Accepted Answer

ABCD

Answer

DCBA

Answer

CDBA

Answer

ACBD

Question 9

Your possessions plus $1,000 have been provided to you. You now have the option to select between:
A. A 50% chance to gain $1,000 and a 50% chance to gain nothing
B. A sure gain of $500

Accepted Answer

BA

Answer

AB

Question 10

You have all you possess, plus an additional $2,000, given to you. You now have the option to select between:
A. A sure loss of $500
B. A 50% chance to lose $1,000 and a 50% chance to lose nothing

Accepted Answer

AB

Answer

BA