Risk Tolerance Quiz

Question 1: Six months after you buy an equity mutual fund, the value of your investment increases by 20 per cent. Your first reaction is to:
1. Sell it and take your profit
2. Hold it, hoping the price goes up even further
3. Buy more, since there is real money to be made here
 
Question 2: You've bought a stock that's dropped 20 percent of its value in the past two weeks. You:
1. Sell it and get into something safer
2. Hold it, hoping the price goes back up
3. Buy more. The lower price is a real deal
 
Question 3: You've lost $500 at the track. How much are you willing to risk to get back your $500?
1. $0
2. $250
3. $500
 
Question 4: You and two friends are each holding one ticket for a lottery. One of those tickets has won $100,000, but you don't know which. You:
1. Sell your ticket to one of the other guys for $1,000
2. Agree to split the money three ways
3. Go for broke. You want the whole $100,000
 
Question 5: You have an opportunity to invest in a new diamond mine. If the mine is successful, you'll get back 50 to 100 times your investment. If it's a dud, your investment is worthless. There's a one in five chance that the mine will come in. How much would you invest?
1. Nothing
2. Two weeks' salary
3. Six months' salary
 
Question 6: You've inherited a house that's a wreck but located in a very good part of town. You:
1. Sell it
2. Put some money into it and then rent it at below-market rates for that area
3. Tear it down, finance a new home on the property and sell it for a handsome profit.