Stock market risk taking

Question 1

a relative left you of $100,000, but ALL $ must be in ONE of these. Which would you select?

Accepted Answer

A savings account or money market mutual fund, A mutual fund that owns stocks and bonds, Commodities like gold, silver, and oil, A portfolio of 15 common stocks

Question 2

In addition to whatever you own,you have been given $2,000.You are now asked to choose between:

Accepted Answer

A 50% chance to lose $1,000 and a 50% chance to lose nothing, A sure loss of $500

Question 3

When you think of the word "risk" which of the following words comes to mind first?

Accepted Answer

Thrill, Opportunity, Uncertainty, Loss

Question 4

In general, how would your best friend describe you as a risk taker?

Accepted Answer

Willing to take risks after completing adequate research, A real risk avoider, A real gambler, Cautious

Question 5

Given best and worst case returns of the four investment choices below, which would you prefer?

Accepted Answer

$2,600 gain best case; $800 loss worst case, $800 gain best case; $200 loss worst case, $200 gain best case; $0 gain/loss worst case, $4,800 gain best case; $2,400 loss worst case

Question 6

If you unexpectedly received $20,000 to invest, what would you do?

Accepted Answer

Invest it in safe high quality bonds or bond mutual funds, Invest it in stocks or stock mutual funds, Deposit it in a bank act, money market act, or an insured CD

Question 7

If you had to invest $20,000 which of the following invstmnts would you find most appealing?

Accepted Answer

30% in low-risk, 40% in medium-risk 30% in high-risk, 10% in low-risk 40% in medium-risk 50% in high-risk, 60% in low-risk 30% in med-risk, 10% in high-risk

Question 8

You are on a TV game show and can choose one of the following. Which would you take?

Accepted Answer

$1,000 in cash, A 5% chance at winning $100,000, A 25% chance at winning $10,000, A 50% chance at winning $5,000

Question 9

Most of your investment assets are now in high-interest government bonds. What would you do?

Accepted Answer

Sell the bonds and put the total proceeds into hard assets, Hold the bonds, Sell the bonds,put all $ into hard assets,& borrow $ to buy, Sell bonds,put 1/2 into $ mkt acts,& the other hard assets

Question 10

You just finished saving for a "once-in-a-lifetime" vaca. 3wks b4 you leave, you lose your job

Accepted Answer

Go as scheduled, you need the time to prepare for job search, Extend your vaca,might be your last chance to go first-class, Take a much more modest vacation, Cancel the vacation

Question 11

In terms of experience, how comfortable are you investing in stocks or stock mutual funds?

Accepted Answer

Very comfortable, Not at all comfortable, Somewhat comfortable

Question 12

In addition to whatever you own,you have been given $1,000.You are now asked to choose between:

Accepted Answer

A sure gain of $500, A 50% chance to gain $1,000 and a 50% chance to gain nothing

Question 13

If you had the money, how much would you invest?

Accepted Answer

Nothing, Three month's salary, Six month's salary, One month's salary

Stock market risk taking

Questions 13

Stock market risk taking

Questions 13