Cutler Risk Assessment Form

Please Enter Your Name:

Do you currently have an investment policy statement?

NoYes
If yes, when was it last reviewed?

By what institution?

Which one of the following statements best describes your primary investment objective?

Safety of principle is my primary concern.I need to increase my income, and my investments should be safe.My investments assets should grow over time and generate some current income.I want my investments to grow substantially over a long period of time. In pursuit of this goal, I understand that there is the risk of principle loss.

What is the time horizon for these investments? When do you anticipate needing those assets?

Less than 2 years2 - 5 years5 - 10 years10 - 20 yearsOver 20 years

Which statement best describes your preference for income?

My preference is to receive all income generated, as I will be using the income.My preference is to receive some income and reinvest the rest.My preference is to reinvest all the income, as I will not rely on it now.

How much volatility (risk) are you will to accept in your investment portfolio?

Minimal - Returns should be stable and derived mostly from current incomeSome - There can be declines in value as long as the portfolio generates income and shows some capital appreciation over time.Moderate - Somewhat volatile performance is acceptable as long as the portfolio is invested primarily for capital appreciation over the long term.Considerable - Substantial portfolio volatility/risk can be tolerated while pursuing higher potential returns.Extensive - Emphasis is on long-term returns without regard to risk.

The worst performance in my investment portfolio I have actually experienced in a year, is a loss of?

Over 20%10 - 20%5 - 10%0 - 5%

Were you comfortable with the fluctuation?

NoYes

If you invested $1,000,000 in a diversified portfolio and it performed in line with the broad markets that lost value during the first year, at what point would you sell?

$950,000 (5% decline)$900,000 (10% decline)$850,000 (15% decline)$800,000 (20% decline)

Below are the potential ranges of returns of five $1,000,000 portfolios over a one year period. For example, if you owned portfolio "C", your worst-case scenario is a loss of $115,000 and your best-case scenario is a gain of $255,000 (actual return could be any amount in between). Assuming this is the only information you have, which portfolio would you choose?

Portfolio A - Low: -$160,000, Mean: $79,000, High: $320,000Portfolio B - Low: -$130,000, Mean: $74,000, High: $280,000Portfolio C - Low: -$115,000, Mean: $71,000, High: $255,000Portfolio D - Low: -$100,000, Mean: $67,000, High: $235,000Portfolio E - Low: -$95,000, Mean: $64,000, High: $220,000

Given your investment goals, time horizon, and your tolerance for market fluctuations, select where you would place yourself on the following scale.

1 = capital preservation is more important than high total return
10 = maximizing return is the priority, volatility of the portfolio is not a factor
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