Whats your risk score?

[Snodog]

There is a new risk tolerance assessment, which appears to be free through November 30th at Your Free FinaMetrica Risk Profile. It's scored on a 0 to 100 scale with 50 being average and 10 being the standard deviation; lower scores mean risk avoiding, higher scores mean risk seeking.

So, OK, I guessed I would score a 56 and actually scored a 53. What was your score?

PS- You don't have to give your name and email address. Just enter fictitious ones.

[disneysteve]

I predicted I'd score 60 and actually scored 62.

[feh]

I guessed 60 and was scored 60.

[disneysteve]

FYI - This is free until November 30. It is normally a $30 assessment.

[Caoineag]

I am in group 7 thanks to a score of 82 and I guessed 70. In all fairness though, I am rather young so I would expect to be much more of a risk taker than someone older. I suppose this explains why I see dips as buying opportunities..

[disneysteve]

Originally Posted by Caoineag

I am rather young so I would expect to be much more of a risk taker than someone older.

True, though there is concern among planners that the young have been scared out of the market by the performance of the past couple of years at the very time that they should be most aggressive with their investing.

[Joan.of.the.Arch]

I'm risk averse enough not to want to register to take the assessment.

[Snodog]

Originally Posted by Joan.of.the.Arch

I'm risk averse enough not to want to register to take the assessment.

You are off the chart on the low end!

You can just do what I did and make up a name and email address.

[KTP]

Ok, that was about the dumbest survey I have ever seen.

I didn't even bother finishing it becaue most of the questions were of the form (or worded to be similar to this):

How do you rate your tolerance for risk:

A) Very tolerant
B) Somewhat tolerant
C) about average
D) Not too tolerant
E) I don't like risk



Uhm, why didn't they just have one question:

What is your risk score (pick a number from 1 to 100): ___

LOL they eventually want to charge $30 for this?

A real survey would never ask you a direct risk question, rather it would have studied the way people react to other things in their life and develop a formula to determine risk. An example might be a question asking at what point do you start looking for a gas station:

A) half tank
B) quarter tank
C) eigth tank
D) just above empty
E) when the light comes on

Actually when I think about it, even this fits the above wording. Well, I don't know exactly what type of question would be appropriate, but then I am not trying to charge $30 for crap either.

[disneysteve]

KTP - I read the article in Money magazine that introduced this survey and offered it free to readers for now. This survey is very highly regarded in the field and is the one that most financial professionals now use when working with their clients. It may seem overly simplified but apparently they have years and years of research and data behind those questions and proof that the results do accurately correlate with investors' behavior.

[KTP]

"proof that the results do accurately correlate with investors' behavior."

Ok, so they have proof that if you ask someone rate your risk tolerance from 1 to 100 and they give you a number that this number correlates with their willingness to take risk.



Of course it correlates with their behavior. My point was the questions were so direct and obvious that they might as well have just asked you pointedly how risk adverse you were and posted that as the result.

Anyway, the snuggie, which is basically two holes cut into a blanket has made 10s of millions of dollars, so I guess you can sell anything nowadays.