Investment Risk Tolerance Quiz

[MachineGhost]

Backed by science! Risk tolerance is a stable personality trait. However, risk perception changes because it is a cognitive appraisal based on one's current mental state.

http://njaes.rutgers.edu:8080/money/riskquiz/

[boglerdude]

24 - average/moderate tolerance for risk.

Expected lower. . .I found this forum after all.

They say people are irrationally risk averse but it also depends on how much you can afford to lose.

[MachineGhost]

Me too.

[l82start]

ditto
but with a 28 instead of 24.. i am a wild man

(Your Score: 28 You have an average/moderate tolerance for risk)

[dragoncar]

Above average, but possibly a $200 gain is insignificant compared to my portfolio. If they example values were 10-100 times bigger I'd be far more cautious

[MachineGhost]

Above average, but possibly a $200 gain is insignificant compared to my portfolio. If they example values were 10-100 times bigger I'd be far more cautious

Yeah, I noticed that too. The marginal wealth impact of some of the questions is a waste of time for us peeps but you're "supposed" to choose the correct answer anyway according to the rules of behaviorial finance (i.e. go for the highest expected value of the propositions instead of the sure gain... well, the highest expected value is a waste of time for me, so I rather have the sure gain than risk getting nothing at all or less.)

And I thought the lack of "valuation" was conspisciously absent also. That plays the largest role in determing future long-term returns than behavioral finance questions. But that may be too much for the average Boobus Americanus.

[clacy]

33 here. I guess that's why I'm comfortable with a leveraged PP.

[dualstow]

twenty

[buddtholomew]

shit...17.
Basically anything but Fort Knox is insufficient.

[Cortopassi]

29...on paper.

Reality is much lower...

Which is why I like the PP.

[iwealth]

27, and I also have no idea how I'd have answered some of those questions under different financial circumstances.

17, Budd, sheesh

[buddtholomew]

It's a phobia, difficult to overcome.

[MachineGhost]

It's a phobia, difficult to overcome.

In reality, I wouldn't have the investments they recommend at 24 either. I'm very phobic.

[dragoncar]

I didn't even know what they were getting at with the whole "some experts think metals will go up do you sell your bonds?" Uh no I don't change my AA based on what "some experts" think

[LazyInvestor]

30 with standard PP

[Kriegsspiel]

I didn't even know what they were getting at with the whole "some experts think metals will go up do you sell your bonds?" Uh no I don't change my AA based on what "some experts" think

Yea I picked the "I don't care what they say" option. I also picked "no money" for the geologist neighbor because how would he know there's a 20% chance of striking gold? It does make sense, in a way, that trusting other people like that depends on how "risky" you are, since they can lose your money, but I didn't think that's the kind of risk I'd be getting assessed on. The whole survey could have been "experts think long term government bonds are going to do better than 60-40 in the next 2 years, do you put all your money in those bonds, or hold what ya got?" Instead of asking YOU what YOU'D do in current market conditions. I guess when you are the experts, you would feel like what they said matters.

[MachineGhost]

Yea I picked the "I don't care what they say" option. I also picked "no money" for the geologist neighbor because how would he know there's a 20% chance of striking gold? It does make sense, in a way, that trusting other people like that depends on how "risky" you are, since they can lose your money, but I didn't think that's the kind of risk I'd be getting assessed on. The whole survey could have been "experts think long term government bonds are going to do better than 60-40 in the next 2 years, do you put all your money in those bonds, or hold what ya got?" Instead of asking YOU what YOU'D do in current market conditions. I guess when you are the experts, you would feel like what they said matters.

Blah, blah, blah... but what was your score? Can you top lazyinvestor's 30?

[Kriegsspiel]

32. But I think it's a poorly constructed survey.

[dragoncar]

The classics questions are the ones with equal expected value, so would you rather have $500 or a 50/50 chance at $0/$1000. That makes sense I guess. I'd typically pick a sure thing all else being equal.

Now if it's $500 vs 50/50 chance of $2000/0 I'd flip the coin. Usually you keep adjusting the values until you find the point at which you prefer the coin flip.

But if it's $5 million vs 50/50 chance of $20 million/0, I'd go back to the sure thing because it's more money than I need

[bitcoininthevp]

29 here. guess that explains the bitcoin in the vp.

[bedraggled]

27

[dragoncar]

I got a perfect score (100) and think the test was very well written

[dualstow]

It's a phobia, difficult to overcome.

It's one of the better phobias, though, and better than being a gambler/spendthrift.

[yankees60]

Backed by science! Risk tolerance is a stable personality trait. However, risk perception changes because it is a cognitive appraisal based on one's current mental state.

http://njaes.rutgers.edu:8080/money/riskquiz/

That link led to nowhere. Doing a Bing internet search on the words Rutgers risk quiz ended up bringing me here: http://pfp.missouri.edu/research_IRTA.html

Took it and got a 28, on the high end of "You have an average / moderate tolerance for risk" and just below "You have an above-average tolerance for risk".

Vinny

[dualstow]

Backed by science! Risk tolerance is a stable personality trait. However, risk perception changes because it is a cognitive appraisal based on one's current mental state.

http://njaes.rutgers.edu:8080/money/riskquiz/

That link led to nowhere.
...

That’s because the thread is three.years.old. In Internet forum thread years, it is George Burns. It’s the Old Man of the Mountain. It was quite dead, or was before you exhumed it. What the hell, Vinny?

If you buy any classic cereal boxes on eBay, I recommend that you do not mail in the box tops with fifty cents, no matter what it says, because you’re doing to be disappointed.

For the rest of us, I’m not sure how we’re supposed to tell which of these topics are truly active, and which ones are Vinny telling us he got a “28” on an exam that nobody remembers.