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Investor profiles help determine a person’s tolerance to risk. You can get an idea of what type of investment suits you by answering questions like: “How would I feel if the shares I invested in lost 20% of their value?” You never find two identical investors and there is no product or investment strategy that suits everyone. Young investors with long-term objectives can usually accept higher risks.

INVESTOR PROFILE

Answer the following questions as honestly as possible to determine your own investor profile.

DISCOVER YOUR INVESTOR PROFILE

1

I would lose sleep if I invested in shares and they fell 20% in value.

I fully agree. I generally agree. I slightly disagree. I totally disagree.

only 2 Suppose each of the investments below cancouldresult in onethe of two outcomes. The odds are equal that it be either of results. If you had to invest all your savings from last summer, which of the following investments would you choose?

Investment 1: No gain or a 2% gain Investment 2: A 5% loss or a 10% gain Investment 3: A 10% loss or a 20% gain Investment 4: A 15% loss or a 30% gain Investment 5: A 40% loss or a 80% gain

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DISCOVER YOUR INVESTOR PROFILE (CONTINUED)

shares of a large well-known 3 You invest $500 inworth $1,000. What would youcorporation. After two months, they are do?

I sell them in a hurry in order to pocket a profit. I sell a sizeable number of them, but I hold on to some in case the shares keep climbing. I hold on to all of them. I buy more using the money I earned in the meantime. I purchase more and borrow money from my parents to buy even more.

shares of a large well-known corporation. After two 4 You invest $500 inworth $250. What would you do? months, they are

I sell them in a hurry so that I don’t lose everything. I sell a sizeable number, but I keep some in case the shares climb again. I hold on to all of them. They will eventually go up. I buy some more using the money I earned in the meantime. For this...