- Investment Tolerance
- Investment Horizon
- Risk Evaluation
What is your investment temperament? (Please check one)
Investment “risk” means different things to different people. Please rank the following statements from 1 (the statement that would worry you the most) to 4 (the statement that would worry you the least).
I would be very concerned if I did not achieve the return on my portfolio that I expected, i.e. my target rate of return.
I would be very concerned if my portfolio was worth less in “real” dollars because of inflation erosion.
I would be very concerned with short-term volatility, i.e. if my portfolio dropped substantially in value over one year.
I would be very concerned with long-term volatility, i.e. if my portfolio dropped in value over a long period of time (i.e. five years and longer).
Except for the “great depression,” the longest time investors have had to wait after a market “crash” or a really bad market decline, for their portfolio to return to its earlier value has been: 4 years for stocks & 2 years for bond investments. Knowing this, and that it is impossible to protect yourself from an occasional loss, answer the following question: “If my portfolio produces a long-term return that allows me to accomplish my goals, I am prepared to live with a time of recovery of…”
Please check the statement that reflects your preference. (Please check one)
Suppose that a growth mutual fund you have held for one year has lost 15 percent of its value, which when this happens is consistent with the performance of similar funds. What is your reaction? (Please c
The following chart shows the possible range of possible values for four different investments of $100,000 after one year. Which investment would you be most comfortable owning? See the image here: https://goo.gl/QF667X