Risk profile quiz

Each of the 8 answers scores 1 to 4, for a total out of 32. Under 37.5% of the maximum is conservative, under 62.5% moderate, under 85% growth, and anything higher aggressive. Each profile comes with an example asset mix.

What it assumes

• It blends risk tolerance (how drops feel) with risk capacity (whether you can afford them).
• Emergency savings and high-interest debt pull the score down, because they limit how much risk you can carry.
• The example mixes are illustrations for learning, not a recommended portfolio.

Worked example

Someone under 35 with a stable salary, a 10+ year horizon, and six months of savings, who would hold through a 30% fall, will usually land in growth or aggressive. The same person with no emergency fund and credit-card debt scores several points lower.

Learn the idea behind it

• Risk and reward are the same coin
• The asset classes, explained
• Index funds and diversification

Terms used here: Risk tolerance, Risk capacity, Time horizon, Asset allocation.