First Name *Last Name *Email AddressIn general, how would your best friend describe you as a risk taker? *A real gamblerWilling to take risks after completing adequate researchCautiousA real risk avoiderYou are on a TV game show and can choose one of the following. Which would you take? *$2,000 in cashA 50% chance at winning $10,000A 25% chance at winning $20,000A 5% chance at winning $200,000You have just finished saving for a “once-in-a-lifetime” vacation. Three weeks before you plan to leave, you lose your job. You would: *Cancel the vacationTake a much more modest vacationGo as scheduled, reasoning that you need the time to prepare for a job searchExtend your vacation, because this might be your last chance to go first-classHow would you respond to the following statement? “It’s hard for me to pass up a bargain.” *Very trueSometimes trueNot at all trueIf you unexpectedly received $40,000 to invest, what would you do? *Deposit it in a bank account, money market account, or an insured CDInvest it in safe high quality bonds or bond mutual fundsInvest it in stocks or stock mutual fundsIn terms of experience, how comfortable are you investing in stocks or stock mutual funds? *Not at all comfortableSomewhat comfortableVery comfortableWhich situation would make you the happiest? *You win $100,000 in a publisher’s contestYou inherit $100,000 from a rich relativeYou earn $100,000 by risking $2,000 in the options marketAny of the above—after all, you’re happy with the $100,000When you think of the word “risk”, which of the following words comes to mind first? *LossUncertaintyOpportunityThrillYou inherit a mortgage-free house worth $160,000. The house is in a nice neighborhood, and you believe that it should increase in value faster than inflation. Unfortunately, the house needs repairs. If rented today, the house would bring in $1,200 monthly, but if updates and repairs were made, the house would rent for $1,600 per month. To finance the repairs you’ll need to take out a mortgage on the property. You would: *Sell the houseRent the house as isRemodel and update the house, and then rent itIn your opinion, is it more important to be protected from rising consumer prices (inflation) or to maintain the safety of your money from loss or theft? *Much more important to secure the safety of my moneyMuch more important to be protected from rising prices (inflation)You’ve just taken a job at a small fast growing company. After your first year you are offered the following bonus choices. Which one would you choose? *A five year employment contractA $50,000 bonusStock in the company currently worth $50,000 with the hope of selling out later at a large profitSome experts are predicting prices of assets such as gold, jewels, collectibles, and real estate (hard assets) to increase in value; bond prices may fall, however, experts tend to agree that government bonds are relatively safe. Most of your investment assets are now in high interest government bonds. What would you do? *Hold the bondsSell the bonds, put half the proceeds into money market accounts, and the other half into hard assetsSell the bonds and put the total proceeds into hard assetsSell the bonds, put all the money into hard assets, and borrow additional money to buy moreAssume you are going to buy a home in the next few weeks. Your strategy would probably be: *To buy an affordable house where you can make monthly payments comfortablyTo stretch a bit financially to buy the house you really wantTo buy the most expensive house you can qualify forTo borrow money from friends and relatives so you can qualify for a bigger mortgageGiven the best and worst case returns of the four investment choices below, which would you prefer? *$400 gain best case; $0 gain/loss worst case$1,600 gain best case; $400 loss worst case$5,200 gain best case; $1,600 loss worst case$9,600 gain best case; $4,800 loss worst caseAssume that you are applying for a mortgage. Interest rates have been coming down over the past few months. There’s the possibility that this trend will continue. But some economists are predicting rates to increase. You have the option of locking in your mortgage interest rate or letting it float. If you lock in, you will get the current rate, even if interest rates go up. If the rates go down, you’ll have to settle for the higher locked in rate. You plan to live in the house for at least three years. What would you do? *Definitely lock in the interest rateProbably lock in the interest rateProbably let the interest rate floatDefinitely let the interest rate floatIn addition to whatever you own, you have been given $2,000. You are now asked to choose between: *A sure gain of $1,000A 50% chance to gain $2,000 and a 50% chance to gain nothingIn addition to whatever you own, you have been given $4,000. You are now asked to choose between: *A sure loss of $1,000A 50% chance to lose $2,000 and a 50% chance to lose nothingSuppose a relative left you an inheritance of $200,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select? *A savings account or money market mutual fundA mutual fund that owns stocks and bondsA portfolio of 15 common stocksCommodities like gold, silver, and oilIf you had to invest $40,000, which of the following investment choices would you find most appealing? *60% in low-risk investments 30% in medium-risk investments 10% in high-risk investments30% in low-risk investments 40% in medium-risk investments 30% in high-risk investments10% in low-risk investments 40% in medium-risk investments 50% in high-risk investmentsYour trusted friend and neighbor, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only 20%. If you had the money, how much would you invest?" *NothingOne month’s salaryThree month’s salarySix month’s salaryCalculationsSubmitPlease do not fill in this field.