Risk Tolerance Quiz Answer True or False by entering an x in the appropriate box. Be sure to enter an x for only one box (True or False) per answer, otherwise your results will be incorrect. TRUE FALSE 1. If I own stock, I will check its price at least daily if not more often. TRUE FALSE 2. When driving on an interstate, and traffic and weather permit, I never drive in excess of the posted speed limit. TRUE FALSE 3. If the price of my stock declines, my first reaction is to sell. TRUE FALSE 4. Another stock market crash similar to 1929 could occur very unexpectedly. TRUE FALSE 5. When I fly in less than perfect weather, I tend to get nervous and concerned about my safety. TRUE FALSE 6. If I sold a stock at a loss of more than 25%, it would greatly shake my confidence in my ability to invest. TRUE FALSE 7. I intensely dislike blind dates. TRUE FALSE 8. When I travel, I write down a packing list to be sure that I don't forget anything. TRUE FALSE 9. When traveling with others, I prefer to do the driving. TRUE FALSE 10. Before buying a stock I would want to talk to at least two other people to confirm my choice. Score Comment You have the risk tolerance to invest. Results 0-3 True: You have the risk tolerance to invest in individual common stocks. 4-6 True: You would be a nervous investor, but with more knowledge and a few successes, you could probably raise your risk tolerance to a suitable level. Mutual funds might prove a good starting point for your level of risk tolerance. 7-10 True: You are probably a very conservative and risk-intolerant investor who is probably better suited to a bond portfolio. 3. Determine whether investments will help you to achieve your short-, intermediate-, and long-term goals. Complete the template below for the short-, intermediate-, and long-term goals that you have established and reviewed throughout the course. In determining whether investing is suitable for each goal, take into consideration the timeline for accomplishing the goal, the critical nature of the goal, and, of course, the results of your risk tolerance test. For those goals that you determine investments are not suitable, enter an "N" in column two, and do not complete the rest of the line for that goal. If, however, you enter a "Y" in column two, think about the kind of investment that is appropriate and justify your selection of stocks as a risk-appropriate means to accomplish this goal. Short-Term Goals SUITABLE ? Yes or No TYPE OF INVESTMENT JUSTIFICATION Intermediate- Term Goals SUITABLE ? Yes or No TYPE OF INVESTMENT JUSTIFICATION Long-Term Goals SUITABLE ? Yes or No TYPE OF INVESTMENT JUSTIFICATION Decisions 1. Summarize your reasoning for either investing or not investing to meet your goals. 2. If you decide to invest, how much will you invest each month? What types of investments will you purchase? Why