What Is Your Investment Risk Tolerance? Take the Quiz
February 8, 2012

When it comes to investing, risk and reward go hand in hand. The phrase "no

pain, no gain" comes close to summing up the relationship between risk and


If you plan to buy securities -- such as stocks, bonds, or mutual funds --

it's important that you understand that you could lose some or all of the money

you invest.

The reward for taking on risk is the potential for a greater investment

return. If you have a financial goal with a long time horizon, you may make more

money by carefully investing in higher risk assets, such as stocks or bonds,

than if limit yourself to less risky assets. On the other hand, lower risk cash

investments may be appropriate for short-term financial goals.

An aggressive investor, or one with a high risk tolerance, is willing to risk

losing money to get potentially better results. A conservative investor, or one

with a low risk tolerance, favors investments that maintain his or her original


What Is Your Investment Risk Tolerance?

You can take an online quiz to get an idea of your risk tolerance.  The

quiz was developed by two university personal finance professors, and is

provided by Rutgers University.

Take the quiz here:

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