If you scored thirty or more points, you’re an aggressive investor who is willing to take high risks in search of high returns. You are not greatly stressed by taking significant risks.
Typical behavior indicates that most investors either don’t understand risk or choose to ignore it. Here’s how we know. When the market is rising, money floods into stocks and mutual funds, even as each upward move in price increases risk and reduces potential returns. In a bear market, many investors engage in near-panic selling, even though each drop in price decreases risk and increases potential returns. For most investors, the two most effective ways to manage risk are to limit your aggressive exposure to a small part of the whole portfolio and to stick with your program once you have embarked on it.