How much risk is too much?
Zoomer | January 1st, 2006
Want a quick insight into just how much of a risk-taker you are? Try this little self-test and see.
QUESTIONS: | AGREE | DISAGREE | UNSURE | |
I enjoy visiting a casino and regard any losses as simply the cost of an evening’s entertainment. | ||||
I regularly buy lottery tickets.</. | ||||
When renewing a mortgage, I prefer to take a shorter term with a lower rate, rather than to lock in at a higher rate for five years. | ||||
When on the highway, I’ll exceed the speed limit if no police are around.. | ||||
I’d rather take a one in ten chance to win $5,000 than a one in three chance to win $500. . | ||||
I enjoy playing games for money. | ||||
I delay planning holidays to the last minute in order to get discounts. | ||||
I usually arrive late for appointments. | ||||
I want to be rich and I’ll do whatever it takes to achieve that, within reason. |
Score two points for every “Agree”, one point for each “Unsure” and no points for all “Disagree” responses. Here’s how to interpret the results.
- 15-20 points – You like to live on the edge. You have a high tolerance for risk and should plan your mutual fund investments accordingly.
- 8-14 points – You’ll accept a degree of risk, but it may make you somewhat uncomfortable and you don’t want to overdo it. A balanced fund portfolio looks appropriate.
- 0-7 points – You’re very conservative by nature. Too much risk will give you bad dreams. Stick with funds at the lowest end of the risk scale.