Go to the www.investopedia.com/articles/basics/03/050203.asp Web site to learn more about diversification, the factors that influence investors' risk preferences, and the types of investments that fit into each of the risk categories. Then check out www.investopedia.com/articles/pf/05/061505.asp for asset allocation guidelines for various types of portfolios from conservative to very aggressive.

What do you conclude about your own risk preferences and the best portfolio type for you?

What would you expect to happen to your attitude toward risk as you get older?

How might your portfolio composition change?