Risk Attitude Questionnaire

This short questionnaire helps financial advisors make an objective assessment of their client's attitude to investment risk. It produces a score ranging from 0 (most risk-averse) to 90 (most risk-tolerant). A copy of the answers and the results page may be printed, signed by both parties, and retained for the advisor's records. The results are strictly private and cannot be accessed by Clarus Investment Solutions.

A. How would you describe your knowledge of investments?

little or none.
moderate.
good.
extensive.

B. In which of the following timeframes would you anticipate accessing the bulk of your investment?

less than three years
3 to 5 years
5 to 7 years
7 to 10 years
beyond 10 years

C. Your attitude to risk/reward is best described as:

no tolerance even for short-term falls in value (accepting that purchasing power is likely to be eroded over time)
minor fluctuations acceptable – understand that returns are likely to be very modest
substantial fluctuations acceptable in pursuit of higher returns over time
unconcerned about fluctuations/willing to accept a substantial loss of capital – maximising growth is the primary objective

D. It is your intention to:

start drawing an income of > 5% p.a. within the next 5 years
start drawing an income of < 5% p.a. within the next 5 years
not draw an income for at least 5 years
not draw an income for at least 10 years
perhaps draw an income within 10 years, but timing unsure

E. If your portfolio decreased significantly in value over a one year period you would be likely to:

cut your losses, sell your investments and put the proceeds on deposit
sell half the investment and put the proceeds on deposit
hold the portfolio and make no changes - you understand that markets can have bad years
invest additional money in the markets to take advantage of the better value on offer
can't say how you would react

F. Have you ever made an investment of a size which mattered to you and which showed a significant loss in value, even on a temporary basis? If so, did it:

cause you significant stress?
bother you, but not to the degree of significant stress?
not bother you - these things happen
never made such an investment

G. Have you ever? (tick all options which apply)

acquired shares through a demutualisation (First Active, Canada Life etc)?
acquired shares as part of an employee share scheme?
bought shares in a public issue (e.g. eircom)
bought shares of your own choice or on advice?
owned unit-linked funds or unit trusts?
dealt in CFDs, financial spread betting or other derivatives?
owned investment property (ie. excluding your principle residence) or invested in a geared property or similar vehicle?

H. You are a contestant on a TV quiz show and have just answered the €50,000 question.
The next question can win you €100,000 but you are unsure of the answer
- you are certain that it is not a. or b. but don't know as between c. and d.

not answer and take the €50,000
eliminate one incorrect answer, leaving you a choice of three: if wrong you go home with €25,000; if correct you collect €75,000
guess the answer: if correct you win €100,000, but if wrong you go home empty handed

I. You are due to go on an early morning international flight and the recommended check-in time is 90 minutes before flying
-which of these scenarios best describes you?

pack two days earlier, setting a second alarm clock for a time which will get you there at least 2 hours beforehand (allowing for traffic delays)
pack the night before, setting two alarm clocks for a time to arrive at or before the 90 minutes
finish packing just before leaving, but in time to get there 'in or about' the 90 minutes
take the view that 90 minutes really means 60

J. You are renewing your household insurance, and face a choice of lower premiums/higher exesses as shown. Which do you choose?

premium €700, with excess of €250
premium €600, with excess of €1000
premium €300, with excess of €5000
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