AAII

1. Your ability to reduce risk is based on:

How many years you can invest

The level of return you need

How much risk you can stand

Your tax bracket

All of the above

2. What’s the best way to judge your tolerance for risk?

Invest in a volatile stock

Look at the worst one-year return for the investment you are considering

Examine your gambling habits

3. If you are saving for retirement that is many years away, you would focus on:

High dividend-paying investments

Income-generating investments

Growth potential of investments

4. A time horizon for investing starts in the range:

five to 10 years

20-30 years

40-50 years

5. High annual income is a drawback for:

Retirees

Investors in a high tax bracket

Investors in a low tax bracket

6. What would cause you to redefine your personal investment profile?

Retirement

Larger portfolio

Different stage in life

All of the above

7. What’s the key to an effective personal portfolio?

High return

Low taxes

Balance of return, risk and tax exposure

Low risk

QUIZ: First Steps to Successful Investing