Last year, the US stock market averaged a 20-year return of 9.2%. Unfortunately, most investors made half of that.[1] The buy low, sell high mantra is great in theory, but difficult in practice. Markets continue to reflect our ever-changing globalized economy, and offer near limitless investment alternatives. Understanding one's risk tolerance can go a long way in choosing the appropriate portfolio. Take our quiz to find out where you stand!

Risk Tolerance Quiz

You are on a TV game show and can choose one of the following. Which would you take?
You have just finished saving for a "once-in-a-lifetime" vacation. Three weeks before you plan to leave, you lose your primary income source. You would:
If you unexpectedly received $20,000 to invest, what would you do?
In terms of experience, how comfortable are you investing in stocks or stock mutual funds?
When you think of the word "risk" which of the following words comes to mind first?
In addition to whatever you own, you have been given $10,000. You are now asked to choose between:
Given the best and worst-case returns of the four investment choices below, which would you prefer?
In addition to whatever you own, you have been given $20,000. You are now asked to choose between:
Suppose a relative left you an inheritance of $1,000,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select?
Your 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?
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What is your household's approximate annual gross income before taxes?
What is your household's approximate net worth, excluding the value of your primary residence?
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1. http://goo.gl/IDW0e2 [Dalbar.com]