Quiz: What is your risk tolerance?
Least risk tolerant
You are wary of risk and are likely missing out on the aggressive investments you need in your portfolio to get higher returns. If you are young, you should be more aggressive since you have enough of a time horizon to weather the impact of market volatility on your portfolio.
Moderately risk tolerant
While you are open to taking risks, you are not the most aggressive investor. You weigh risks carefully and are up for it if you think you can get an adequate return. Your portfolio is likely more weighted to the conservative side. You could step up your stock allocation if you are young -- say, anywhere from 20 to 40 or even 50.
Most risk tolerant
You are confident about your investments and take an aggressive stance while expecting to get higher returns. Remember, though, that the hottest stocks can take an abrupt turn in the opposite direction. Some investors have burnt their fingers chasing the hot offerings. It's good to have a diversified portfolio balanced with some less-risky investments.