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Investing 444 Risk Aversion Quiz D.A.V.I.D. Store Tool Shed
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Risk Aversion Quiz Logo

Risk Aversion Scale

In the below scenarios you'll be given an update about an investment. You can then decide to Sell, to Do Nothing or to Buy More.

Your choices are scored based on the riskiness of your answer and that helps to determine your risk aversion score. Your Risk Aversion score is then used to break down your portfolio between stocks, or your "risky" portfolio, and bonds, or your "risk-free" portfolio.


Scenario Question
# 1 This weekend you were at a local market and your favorite perishable food was on sale. You only wanted two servings but it's half off. What do you do in this situation?
Sell Do Nothing Buy More
# 2 The stock market recently experienced three days of 2%+ gains. What would you do in this situation?
Sell Do Nothing Buy More
# 3 A hurricane just caused record devastation and 12% of your portfolio is invested in insurance company stocks. What would you do in this situation?
Sell Do Nothing Buy More
# 4 A new currency emerges and becomes the talk of every investor. You happened to buy some a few months ago. What would you do in this situation?
Sell Do Nothing Buy More
# 5 You and a business partner just sold a company you spent 10 years building. He went out and spent 10% of his earnings on a sailboat. Now he wants a bigger one and some toys to go with it. What do you think he should do?
Sell Do Nothing Buy More
# 6 One of your investments announces that it's selling off one of the core components of its business to a competitor. What would you do in this situation?
Sell Do Nothing Buy More
# 7 Houses in your neighborhood are up for sale at a price below what you paid. What would you do in this situation?
Sell Do Nothing Buy More
# 8 You recently purchased an investment that immediately lost more than 20% of its value. What would you do in this situation?
Sell Do Nothing Buy More

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