Essex Online Trading Challenge: Questionnaire 2 -

* First Name

* Last Name

* Student ID No.

* Essex E-mail Address

* Gender

Female

Male

* Which factor would you consider to be most important before choosing an investment?

My priority is the complete safety of my investments. I do not want to risk losing any of my principal at all.

My investment should be able to give me some income.

My investments should give me some income and also grow in value over time.

My investments should grow over time, but I would also like some current income.

My priority is for my investments to grow substantially in value over time. I do not need any current income from the investments.

* The value of an investment can go up and down. How much volatility are you prepared to tolerate?

None. I do not want to lose any money, even if it means that I have very low returns.

Some. I am prepared to accept some fall in the value of my investment, if it is expected to grow over time.

A lot. I am prepared to take substantial risk to achieve much higher returns.

* Investments in which the principal is 100% safe often do not keep pace with inflation. This means a loss in purchasing power. Which of the following statements do you most agree with?

My money should be 100% safe, even if it means my returns do not keep pace with inflation.

I am willing to risk an occasional loss in principal so that my investments may at least keep pace with inflation over time.

My priority is for my investments to grow faster than inflation. I am prepared to take substantial risk in order to achieve this.

* I understand that the value of an investment can go up and down over time. However, over a one-year period, the maximum loss that I would be prepared to accept is:

* Many investments fluctuate over the short term. If a five-year investment of £100,000 investment lost its value during the first year, at what point would you sell and move to a more stable investment, rather than wait for a turnaround.

£95,000

£90,000 - £94,999

£80,000 - £89,999

Less than £80,000

* Consider the following investments. Investment A provides an average annual return of 10% with minimum risk of loss of principal. Investment B provides an average annual return of 15% but carries a potential loss of principal of 20% or more in any year. If I could choose between investment A and investment B, I would invest:

100% in Investment A and 0% in Investment B

80% in Investment A and 20% in Investment B

50% in Investment A and 50% in Investment B

20% in Investment A and 80% in Investment B

0% in Investment A and 100% in Investment B

Please contact [email protected] if you have any questions regarding this survey.