Final Project

Project Instructions:

As we know, risk tolerance is extremely important in the investment planning. Usually, financial planners use risk tolerance questionnaire to help their clients determine the risk tolerance. However, there is no perfect risk tolerance questionnaire currently. For this project, please design a risk tolerance questionnaire by yourself for individual investors. You need put at least FIVE questions in your questionnaire and explain why you put this question in your risk tolerance questionnaire.

Example:

Questions:

1. Assuming you are investing in only one bond, which bond do you choose?

A. a high-yield (junk) bond that pays a higher interest rate than the other bonds, but also gives you the least sense of security with regard to a possible default.

B. The bond of a well-established company that pays a rate of interest semi-annually.

C. A tax-free bond, since minimizing taxes is your primary investment objective.

Note: For your explanations, DO NOT JUST TELL ME THIS QUESTION IS IMPORTANT.