Educational exercise only. This quiz is a self-reflection tool for learning. It is not a suitability assessment, a Know-Your-Client (KYC) process, or financial, investment, tax or legal advice, and it does not recommend any product. Your answers are scored only on this page and are never saved or sent anywhere. Before making investment decisions, speak with a licensed (registered) advisor who can review your full situation. You can check a registration at aretheyregistered.ca.
How this quiz works
Canadian regulators describe your risk profile as two separate things:
- Part A – Risk willingness (risk tolerance): how comfortable you feel with ups and downs and possible losses.
- Part B – Risk capacity: how much loss your finances can actually absorb without harming your plans (time horizon, savings cushion, income, debt, reliance on the money).
Each part is scored separately. Your overall profile is the lower of the two, which is the approach Canadian regulators (CSA and CIRO) say a risk profile should generally reflect. Answer with one goal in mind, such as retirement savings, and pick the option that is most true for you today, not what you think is the “right” answer.
How the scoring works
Sources and research behind this quiz
The questions are original and were written for this course. They are inspired by (not copied from) the research and guidance below.
- Grable, J. E., & Lytton, R. H. (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Services Review, 8(3), 163–181. A 13-item scale covering investment risk, risk comfort and experience, and speculative risk. Journal page · DOI
- Kuzniak, S., Rabbani, A., Heo, W., Ruiz-Menjivar, J., & Grable, J. E. (2015). The Grable and Lytton risk-tolerance scale: A 15-year retrospective. Financial Services Review. Reliability stayed robust (α ≈ 0.77, n = 160,279). Journal page
- Joint CSA/CIRO Staff Notice 31-368, Client Focused Reforms: Review of Registrants’ KYC, KYP and Suitability Determination Practices and Additional Guidance (December 2025). Says risk tolerance and risk capacity should be assessed separately and the overall profile should reflect the lower of the two. PDF
- CIRO, Know-Your-Client (KYC) and Suitability guidance. ciro.ca · CIRO Office of the Investor, Understanding Risk (the “sleep at night test”). ciro.ca
- CSA, Companion Policy 31-103CP (KYC and suitability guidance, consolidated Jan. 1, 2026). PDF (ASC)
- UK FSA/FCA, FG11/05 Assessing suitability: Establishing the risk a customer is willing and able to take (2011), including “capacity for loss”. PDF
- ESMA (2022/2023), Guidelines on certain aspects of the MiFID II suitability requirements (ESMA35-43-3172), including ability to bear losses. PDF
- Pompian, M. M. (2016). Risk Profiling through a Behavioral Finance Lens. CFA Institute Research Foundation. cfainstitute.org
- Vanguard, Investor Questionnaire and its stated limitations (time horizon plus risk tolerance; results are broad guidelines only). vanguard.com
- Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. Econometric Society
- Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5, 297–323 (median loss-aversion coefficient λ ≈ 2.25). PDF
- Brown, A. L., Imai, T., Vieider, F. M., & Camerer, C. F. Meta-analysis of empirical estimates of loss aversion (mean λ around 1.96). PDF
- CSA, National Instrument 81-102, Appendix F, Investment Risk Classification Methodology (10-year standard deviation bands for Fund Facts and ETF Facts). OSC · CSA Staff Notice 81-338 (2025) on discretion. PDF
- Bank of Canada, Staff Analytical Note 2020-22, Canadian stock market since COVID-19: Why a V-shaped price recovery? S&P/TSX fell 37% from Feb. 19 to Mar. 23, 2020. bankofcanada.ca
- Statistics Canada, The accelerated pace of the 2008-2009 downturn (Canadian Economic Observer, 11-010-X, 2010). TSX fell 45% on monthly data (51% on daily data, June 6, 2008 to March 2009). PDF
- Morningstar Canada (Lauricella, T., Jan. 9, 2023), Just How Bad Was 2022’s Stock and Bond Market Performance? (60/40 benchmark −15.3% in 2022 and −22.59% in 2008; Canada Core Bond Index −8.75% in 2022; U.S. market −38.4% in 2008). morningstar.ca
Historical figures describe past index or benchmark behaviour and are not predictions. Past performance does not guarantee future results.