IV. L A EXISTENCIA DE D IOS Y LA SUMISIÓN DE LA VOLUNTAD
6. El infinito cartesiano
58 8.1. Appendix 1: Risk tolerance survey
Questionnaire: Financial risk tolerance
This survey is conducted by Elsa Huhtala at Aalto University, School of Business. The results are anonymous and will be used for a Bachelor’s Thesis on financial risk tolerance. The participants should be citizens of either Singapore or Finland and be currently enrolled in a university.
1. Please select your gender.
Female Male Other
2. Please select your nationality.
Finnish Singaporean Other
3. Do you study at a university currently?
Yes No
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________________________________________________________________ ________________________________________________________________ ________________________________________________________________
5. Please write your age in numbers.
________________________________________________________________ ________________________________________________________________ ________________________________________________________________
6. Have you taken any finance classes at your university or outside of it? How many?
More than 5 classes 3-5 classes
1-2 classes
I have not taken any finance classes
7. How would you classify your level of financial knowledge (obtained through self-study,
classes, experience, e.g.)?
Above average level of financial knowledge Average level of financial knowledge
Below average level of financial knowledge
Financial risk tolerance is measured with the questionnaire developed by Grable and Lytton (1999) in 'Financial risk tolerance revisited: The development of a risk assessment instrument', Financial Services Review; 8: 163-181.
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8. In general, how would your best friend describe you as a risk taker?
A real gambler
Willing to take risks after completing adequate research Cautious
A real risk avoider
9. You are on a TV game show and can choose one of the following, which would you take?
$1,000 USD in cash
A 50% chance at winning $5,000 USD A 25% chance at winning $10,000 USD A 5% chance at winning $100,000 USD
10. You 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 vacation
Take a much more modest vacation
Go as scheduled, reasoning that you need the time to prepare for a job search Extend your vacation, because this might be your last chance to go first-class
11. If you unexpectedly received $20,000 to invest, what would you do?
Deposit it in a bank account, money market account, or an insured CD Invest it in safe high quality bonds or bond mutual funds
Invest it in stocks or stock mutual funds
12. In terms of experience, how comfortable are you investing in stocks or stock mutual funds?
Not at all comfortable Somewhat comfortable
61 Very comfortable
13. When you think of the word "risk," which of the following words comes to mind first?
Loss
Uncertainty Opportunity Thrill
14. Some 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 bonds
Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets
Sell the bonds and put the total proceeds into hard assets
Sell the bonds, put all the money into hard assets, and borrow additional money to buy more
15. Given the best and worst case returns of the four investment choices below, which would
you prefer?
$200 USD gain best case; $0 USD gain/loss worst case $800 USD gain best case; $200 USD loss worst case $2,600 USD gain best case; $800 USD loss worst case $4,800 USD gain best case; $2,400 USD loss worst case
16. In addition to whatever you own, you have been given USD $1,000. You are now asked to
choose between:
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A 50% chance to gain USD $1,000 and a 50% chance to gain nothing
17. In addition to whatever you own, you have been given USD $2,000. You are now asked to
choose between:
A sure loss of $500 USD
A 50% chance to lose $1,000 USD and a 50% chance to lose nothing
18. Suppose a relative left you an inheritance of $100,000 USD, 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 fund
A mutual fund that owns stocks and bonds A portfolio of 15 common stocks
Commodities like gold, silver, and oil
19. If you had to invest $20,000 USD, 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 investments
30% in low-risk investments, 40% in medium-risk investments, 30% in high-risk investments
10% in low-risk investments, 40% in medium-risk investments, 50% in high-risk investments
20. 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?
63 One month's salary
Three month's salary Six month's salary
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8.2. Appendix 2: Point allocation to risk tolerance questions
The points are combined for a total score. The score can range from 11 points to 44 points, when combining and averaging the score for questions 16 and 17, as
suggested.
8. In general, how would your best friend describe you as a risk taker? a. A real gambler (4p)
b. Willing to take risks after completing adequate research (3p) c. Cautious (2p)
d. A real risk avoider (1p)
9. You are on a TV game show and can choose one of the following, which would you take?
a. $1,000 USD in cash (1p)
b. A 50% chance at winning $5,000 USD (2p) c. A 25% chance at winning $10,000 USD (3p) d. A 5% chance at winning $100,000 USD (4p)
10. You have just finished saving for a "once-in-a-lifetime" vacation. Three weeks before you plan to leave, you lose your job. You would:
a. Cancel the vacation (1p)
b. Take a much more modest vacation (2p)
c. Go as scheduled, reasoning that you need the time to prepare for a job search (3p) d. Extend your vacation, because this might be your last chance to go first-class (4p) 11. If you unexpectedly received $20,000 USD to invest, what would you do?
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a. Deposit it in a bank account, money market account, or an insured CD (1p) b. Invest it in safe high quality bonds or bond mutual funds (2p)
c. Invest it in stocks or stock mutual funds (3p)
12. In terms of experience, how comfortable are you investing in stocks or stock mutual funds?
a. Not at all comfortable (1p) b. Somewhat comfortable (2p) c. Very comfortable (3p)
13. When you think of the word "risk," which of the following words comes to mind first?
a. Loss (1p)
b. Uncertainty (2p) c. Opportunity (3p) d. Thrill (4p)
14. Some 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?
a. Hold the bonds (1p)
b. Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets (2p)
c. Sell the bonds and put the total proceeds into hard assets (3p)
d. Sell the bonds, put all the money into hard assets, and borrow additional money to buy more (4p)
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15. Given the best and worst case returns of the four investment choices below, which would you prefer?
a. $200 USD gain best case; $0 USD gain/loss worst case (1p) b. $800 USD gain best case; $200 USD loss worst case (2p) c. $2,600 USD gain best case; $800 USD loss worst case (3p) d. $4,800 USD gain best case; $2,400 USD loss worst case (4p)
16. In addition to whatever you own, you have been given USD $1,000. You are now asked to choose between:
a. A sure gain of USD $500 (1p)
b. A 50% chance to gain USD $1,000 and a 50% chance to gain nothing (3p)
17. In addition to whatever you own, you have been given USD $2,000. You are now asked to choose between:
a. A sure loss of $500 USD (1p)
b. A 50% chance to lose $1,000 USD and a 50% chance to lose nothing (3p)
18. Suppose a relative left you an inheritance of $100,000 USD, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select?
a. A savings account or money market mutual fund (1p) b. A mutual fund that owns stocks and bonds (2p) c. A portfolio of 15 common stocks (3p)
d. Commodities like gold, silver, and oil (4p)
19. If you had to invest $20,000 USD, which of the following investment choices would you find most appealing?
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a. 60% in low-risk investments, 30% in medium-risk investments, 10% in high-risk investments (1p)
b. 30% in low-risk investments, 40% in medium-risk investments, 30% in high-risk investments (2p)
c. 10% in low-risk investments, 40% in medium-risk investments, 50% in high-risk investments (3p)
20. 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?
a. Nothing (1p)
b. One month's salary (2p) c. Three month's salary (3p) d. Six month's salary (4p)
Answers to questions 16 and 17 can be averaged to obtain a combined score. The risk tolerance questionnaire was developed by Grable and Lytton in:
Grable, J., & Lytton, R. H.
(1999). ‘Financial risk tolerance revisited: The development of a risk assessment instr ument’. Financial Services Review; 8: 163-181.
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8.3. Appendix 3: Distribution of responses for every question in the survey
Some of these questions and/or answers were shortened for clarity, please see Appendix 1 for the full wording of the questions. When a number is indicated within the response options, please see notes for an additional explanation. There are two parts to question 4, which are addressed seperately.
54% 46% 46% 54% 100% 37% 19% 43% 1 Social Sciences
69 Extent vacation
71 Notes
1. Other universities featured include the University of Helsinki (Finland), University of
Turku (Finland), University of Tampere (Finland), Nanyang Technological University (Singapore) and Singapore University of Technology & Design (Singapore). Two of the students studied abroad from the country of their origin –their universities were located in the UK (Imperial College London) and the Netherlands (Leiden University).
2. Other majors/faculties featured in the study included Mathematics, Arts, Physics,
Chinese Studies, Industrial Design and Pharmacy.
Commodities Portfolio of 15 common stocks 10% in low-risk, 40% in medium-risk, 50% in high-risk investments