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Private Wealth Management - Reading 14: Managing Individual

Q1. Which of the following personality types applies to investors who make investment decisions based on facts as opposed to their feelings or intuitions?

A)   Methodical and individualist.

B)   Methodical and cautious.

C)   Spontaneous and methodical.

Q2. Gary Daly is a retired schoolteacher who invests most of his money in U.S. Treasury bonds and notes. He has often stated that in times of crisis, he feels that it is better to be safe than sorry. In terms of behavioral finance, Daly is exhibiting which personality type?

A)   Spontaneous.

B)   Methodical.

C)   Cautious.

Q3. The results of a personality typing questionnaire can be used to classify investors according to risk tolerance and how decisions are made. The classification that represents investors suffering the highest trading costs is:

A)   methodical investors.

B)   spontaneous investors.

C)   individualist investors.

Q4. The results of a personality typing questionnaire can be used to classify investors according to risk tolerance and how decisions are made. The classification that represents investors most independent in their decision making is:

A)   individualist investors.

B)   methodical investors.

C)   spontaneous investors.

Q5. The results of a personality typing questionnaire can be used to classify investors according to risk tolerance and how decisions are made. The classification that represents the most risk averse investor would be a(an):

A)   cautious investor.

B)   methodical investor.

C)   spontaneous investor.

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