Financial - Risk Tolerance Quiz

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Risk Tolerance Quiz

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Results Your score for risk capacity is 28 With a score between 22 and 29, you have a moderate capacity for risk. You might consider a balanced portfolio, spread between stocks and bonds. Aim for nearly half your portfolio in bonds, with one third of that in very short-term bonds of one to three years, a third in three to five year bonds and a third in five to 10 year bonds. Another 25 percent might go in large company U.S. stocks and 10 to 15 percent in small company stocks. The remainder should be invested overseas with a sprinkling of it in emerging markets. Professional investors estimate that a worst-case scenario for the portfolio just described is that it would be down 11 percent in a year. Your score for risk tolerance is 30 With a tolerance of 23 to 32, you have a moderate risk tolerance but your capacity suggests you may need to consider a more modest investment strategy. You should consider safe investments. Start with the bulk of your portfolio in short to medium term bonds. The rest of your portfolio should go into stocks, perhaps 12 to 13 percent in large cap, 9 percent in small cap and 5 or 6 percent international. The estimated worst case scenario for such a portfolio would be a 4 percent loss in a year.