Risk Tolerance Questionnaire

  • Risk Tolerance Questionnaire

    Please answer these questions so that your advisor can help you chart your investments to your tolerance to market risk.
  • Format: (000) 000-0000.
  • In general, how would your best friend describe you as a risk taker?*
  • You are on a TV game show and can choose one of the following; which would you take?*
  • 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:*
  • If you unexpectedly received $20,000 to invest, what would you do?*
  • In terms of experience, how comfortable are you investing in stocks or stock mutual funds?*
  • When you think of the word “risk,” which of the following words comes to mind first?*
  • 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?*
  • Given the best and worst case returns of the four investment choices below, which would you prefer?*
  • In addition to whatever you own, you have been given $1,000. You are now asked to choose between:*
  • In addition to whatever you own, you have been given $2,000. You are now asked to choose between:*
  • 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?*
  • If you had to invest $20,000, which of the following investment choices would you find most appealing?*
  • 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 chance of success is only 20%. If you had the money, how much would you invest?*

  • Source: Grable, J. E., & Lytton, R. H. (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Services Review, 8, 163–181.

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