Use this chart as an aid to identify your risk tolerance level.
The volatility indicates an extreme loss, not
indicative of normal volatility, but certainly possiable.
You need to determine if you could withstand
such a loss without selling out.
| Portfolio | Theoretical Composition | Volatility |
| Aggressive | 5%-Micro-Cap Stocks 30%-Small-Cap Stocks 25%-Mid-Cap Stocks 10%-Large-Cap Stocks 15%-International (Developed Nations) Stocks 10%-International (Emerging Nations) Stocks 5%-Options | Could lose between 50-65% in a bad strech but should return ~14%/year. |
| Moderate Portfolio |
15%-Small-Cap Stocks 20%-Mid-Cap Stocks 50%-Large-Cap Stocks 10%-International (Developed Nations) Stocks 5%-International (Emerging Nations) Stocks | Could lose between 40-50% in a bad strech but should return ~12%/year. |
| Middle |
10%-Small-Cap Stocks 10%-Mid-Cap Stocks 30%-Large-Cap Stocks 10%-International (Developed Nations) Stocks 7.5%-High Yield Bonds 7.5%-High Grade Corp. Bonds 17.5%-Diversified Bond Port 7.5%-Mortgage Bond Port. | Could lose between 30-40% in a bad strech but should return ~10%/year. |
| Conservative Portfolio |
5%-Mid-Cap Stocks 25%-Large-Cap Stocks 7.5%-International (Developed Nations) Bonds 15%-High Grade Corp. Bonds 20%-Diversified Bond Port 20%-Government Bond Port. | Could lose between 15-30% in a bad strech but should return ~8%/year. |
| Risk-Adverse |
15%-High Grade Corp. Bonds 20%-Diversified Bond Port 65%-Government Bond Port. | Could lose between 5-15% in a bad strech but should return ~6%/year. |
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