Finance Quiz - Types Of Investors And Risk Profile

Your type is a Passive Investor with Low-Risk Tolerance. A Passive Investor does not participate in the day-to-day decisions of running a company. The passive investor is the one who assumes the market is efficient. Moreover, they believe that the pricing of stocks is correct and reflects the risks involved. A passive investor works with the aid of management and stakeholders to increase its value and to share the true potential with the passive investor. Passive investing broadly refers to a buy-and-hold portfolio strategy for long-term investment horizons, with minimal trading in the market. Passive investment is cheaper, less complex, and often produces superior after-tax results over medium to long time horizons than actively managed portfolios. If an investor is passive and the risk tolerance reveals low-risk tolerance then you are likely to be a Passive Preserver.

Your type is Active Investor with Medium Risk Tolerance. An active investor engages in an investing strategy that involves buying and selling securities and other types of investments. Active investors continuously monitor their investments and market conditions to identify new profit opportunities. As opposed to passive investors, active investors are heavily involved in the market and managing their investments. Active investors have embraced full responsibility for their financial future by not only building investment capital as passive investors, but also taking responsibility for the return on their invested capital through active strategies that add value. If an investor is active and the risk tolerance reveals medium risk tolerance then you are likely to be a Individual Independent.