Pluton - Start

Your investment loses 15% of its value in a market correction a month after you purchased it. Assuming that none of the fundamentals have changed, do you: *

Sit tight and wait for it to journey back up.

Sell it and rid yourself of further sleepless nights if it continues to decline.

Buy more - if it looked good at the original price ir looks even better now.

A month after you purchase it, the value of your investment suddently skyrockets by 40%. Assuming you can't find any further information, what do you do? *

Sell it.

Hold it on the expectation of further gain.

Buy more - it will probably fo higher.

Which would you have rather done: *

Invested in an aggressive growth fund which has grown very little in value in six months.

Invested in a money-market fund only to see the aggressive growth fund you were thinking about double in value in six months.

Would you feel better if: *

You doubled your money in an equity investment.

Your money-market fund investment saved you from losing half your money in a money slide.

Which situation would make you feel happiest? *

You win $100,000 in a publisher's contest.

You inherit $100,000 from a rich relative.

You earn $100,000 by risking $2,000 in the options market.

Any of the above - you're happy with the $100,000, no matter how it ended up in your wallet.

The apartment building where you live is being converted to condos. You can either buy your unit for $80,000 or sell the option for $20,000. The market value of the condo is $120,000. You know that if you buy the condo in might take six months to sell, the monthly carrying costs is $1200, and you will have to borrow the down payment for mortgage. You don't want to live in the building what do you do? *

You inherit your uncle's $100,000 house, free of any mortgage. Although the houses in a fashionable neighbourhood and can be expected to appreciate at a right faster than inflation, it has deteriorated badly. It would net $1000 monthly if rented as is; it would net 1500 per month if renovated. The renovations could be financed by mortgage on the property. You would *

Sell the house.

Rent it as is.

Make the necessary renovations, and then rent it.

You work for a small, but thriving, privately held electronics company. The company is raising money by selling stock to its employees. Management plans to take the company public, but not for four more years. If you buy the stock, you will not be allowed to sell until shares are traded publicly. In the meantime, the stock will pay no dividends. But when the company goes public, the shares could trade for 10 to 20 times what you paid for them. How much of an investment would you make? *

None at all.

One month's salary.

Three months' salary.

Six months' salary

Your longtime friend and neighbour, an experience petroleum geologist, is assembling of group of investors (of which he is one) to fund an exploratory oil well which could pay back 50 to 100 times its investment if successful. If the well is dry, the entire investment is worthless. Your friend estimates the chance of success is only 20%. What would you invest? *

Nothing at all.

One month's salary.

Three months' salary.

Six months' salary.

You learn that several commercial building developers are seriously looking at undeveloped land in a certain location. You are offered an option to buy a choice parcel of that land. The cost is about two months’ salary, and you calculate the game to be about 10 months’ salary. Do you: *

You are on a TV game show and can choose one of the following. Which would you take? *

$1,000 in cash.

50% chance at winning $4,000.

20% chance at winning $10,000.

5% chance at winning $100,000.

It's 1992, and inflation is returning. Hard assets such as precious metals, collectivles, and real estate are expected to keep pace with inflation. Your assets are now all in long-term bonds. What would you do? *

Hold the bonds.

Sell the bonds, and put half the proceeds into money funds 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.

You've lost $500 at the blackjack table in Atlantic city. How much more are you prepared to lose to win the $500 back? *

Nothing - you quit now.

$100.

$250.

$500.

More than $500.