HSIA Asset Allocation Inquiry : Hunter Street Investment Advisors

2. Once distribution begins, for how many years do you expect them to continue?

Risk Tolerance Level

3. Which of the following statements best reflects your views toward investment risk and the effects of inflation?

My goal is to avoid loss, even though I may only keep pace with inflation.

My goal is to earn slightly more than inflation, while still keeping risk to a minimum.

My goal is to increase my investment value and outpace inflation. I am willing to accept short-term losses, but I am not comfortable with extreme performance volatility in my investment account.

My goal is to maximize my account value and outpace inflation. I am willing to assume a higher risk to do so.

4. This table presents the potential worst case loss, probable gain, and potential best case gain of $100,000 invested in five hypothetical portfolios over a one year period. In which of the following portfolios would you prefer to have your investments?

	Potential Worst Case Loss	Probable Gain	Potential Best Case Gain
Portfolio 1	-5,500	+7,500	+17,500
Portfolio 2	-10,000	+9,500	+25,000
Portfolio 3	-15,000	+11,000	+34,000
Portfolio 4	-20,000	+13,000	+43,000
Portfolio 5	-25,000	+15,000	+51,000

6. The willingness to endure investment losses is a major determinant in portfoli suitability. Generally, investments that have experienced high degrees of return fluctuation and higher chance of loss fluctuation have historically provided greater returns over the long run. The following table shows the probable performance of four hypothetical portfolios over 20 years. Which portfolio would you prefer?

	Probable Number of Negative Years	Probable Worst Annual Return	Probable Average Annual Return
Portfolio 1	2	-5%	+7%
Portfolio 2	2	-14%	+9%
Portfolio 3	5	-20%	+10%
Portfolio 4	6	-30%	+12%

7. This graph shows hypothetical gains of five sample portfolios over a three-year holding period. The best potential gains and worst potential losses are presented. Notice that the portfolio with the best gain also had the largest loss. (Select the portfolio in which you are the most comfortable having your investments.)

Portfolio 1

Portfolio 2

Portfolio 3

Portfolio 4

8. The following table presents the probable chance of loss and probable gain for a $100,000 investment in five hypothetical portfolios over a one-year holding period. Based on the information shown below, which of the following portfolios would you select for your investments?

	Portfolio 1	Portfolio 2	Portfolio 3	Portfolio 4	Portfolio 5
Chance of Loss	-10%	-15%	-19%	-22%	-25%
Probable Gain	+7,500	+9,500	+11,500	+13,000	+15,000

9. Which of the following statements is most consistent with your investment attitudes?

Avoiding short-term loss is more important to me than achieving long term higher returns.

I am equally concerned with avoiding short-term losses and achieving long term gains.

I am willing to endure short-term loses to maximize the chance of achieving long- term higher returns.

	Disagree Strongly 1	2	3	4	Agree Strongly 5
I depend on advice from experts when making investment decisions	1	2	3	4	5
I prefer not to make investment decisions on my own, without getting advice	1	2	3	4	5
I prefer not to implement investment decisions myself.	1	2	3	4	5
I prefer to have someone else implement my investment decisions	1	2	3	4	5
I trust someone else to manage my finances	1	2	3	4	5

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HSIA Asset Allocation Inquiry

Time Horizon

Risk Tolerance Level

Please complete the following brief survey so that we may diagnose your current investment decision-making style.