determine Client's Risk Profile
Different investors have different risk tolerances. Much of the difference stems from time horizon. That is, someone with a short investment time horizon is less able to withstand losses. The remainder of the difference is attributable to the investor's appetite for risk. Volatility can be nerve-wracking for many people and they are more comfortable when they can avoid it. Risk and returns are related, however, and the investor needs to recognize the trade-off. The following risk tolerance questionnaire is designed to measure Time Horizon and Tolerance For Risk. The total score recommends which of the five portfolios is most appropriate for you, the investor.
