Risk Profile Questionnaire

Quiz

Risk is broadly understood as “exposure to danger, harm, or loss”. We each have a unique relationship to risk, driven by our thoughts, feelings, and experiences.

Since comfortable degrees of risk can vary from person to person, the 10 questions that follow aim to understand your feelings toward risk. Responses to these questions assist your Wescott/Entrada team to guide you toward an investment portfolio best suited to achieve your financial (and life) goals.

Our staff of CFP’s, MBA’s, JD’s and Ph.D.’s have helped design this question set, aiming to measure your risk tolerance as objectively as possible. You may notice some questions feel repetitive. In fact they are, and by design! Arriving at responses from numerous angles can more accurately identify your feelings toward risk and uncover response anomalies.

Please take a few moments to complete this questionnaire, which has been thoughtfully crafted to aid you in a more successful investment journey.

Imagine you are considering several portfolios in which to invest $100,000. You are also given each portfolio’s historical rate of return, the maximum value the portfolio lost, and the time necessary to recover that lost value. Which portfolio would you choose?

15-Year Annualized Return Portfolio Value Decline from Peak to Trough Number of Months required to Recover Portfolio Value
6% -$20,000 12 months
8% -$33,000 21 months
9% -$44,000 25 months
10% -$55,000 48 months

*Past performance is not a guarantee of future performance (March 2003 to March 2018)

For the following question, please select the value in slider that best matches the degree to which you identify yourself between each pair of descriptors.

When it comes to taking financial risks, I tend to (be):

More Somewhat Neutral Somewhat More
Pessimistic Optimistic
Focus on the future Focus on now
Avoid risks Take risks
Disciplined Opportunistic
Decisive Uncertain
Rules driven Situationally driven
Trust the facts Trust my Intuition
Calm Anxious