How Risk Averse Are You? Take this 5 Question Quiz to Find Out

All of the recent hype surrounding Gamestop, cryptocurrency, non-fungible tokens (NFTs), and meme stocks made me question – Is anyone risk averse anymore?

The Definition of Risk

According to Merriam Webster, the definition of risk is the “possibility of loss or injury.”

Risk Averse Definition

Risk aversion is defined as avoiding risk. Pretty straightforward. If you are a risk-averse investor, you will seek out investments with a low probability of declining in value.

1. 0-5 years away 2. 6-10 years away 3. 10-20 years away 4. 20+ years away

Question 1: How Close to Retirement Are You?

Question 2: How Big is Your Emergency Fund?

1. I Don’t Have One 2. 1 Month of Savings 3. 2-3 Months of Savings 4. 3+ Months of Savings

Question 3: Of the Following, Which Would You Choose for Your Investment Returns This Year?

1. A guaranteed return of 3% 2. A 95% chance of receiving a 7% return (5% chance of 0%) 3. A 75% chance of receiving a 11% return (30% chance of 0%) 4. A 50% chance of receiving a 25% return (50% chance of 0%).

Question 4: Do You Ever Buy a Lottery Ticket or Gamble?

1. Never 2. Maybe Once a Year 3. Occasionally 4. Every Chance I Get, I love lotteries and the casino

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