Figuring out your true risk tolerance is more complicated than the approaches taken by most online tools. But you can get a sense of your tolerance with any of the following tests:
MSN Money offers a risk tolerance quiz that tells you two things: how comfortable you are taking risks and whether your personal circumstances are such that you can afford to take risks.
The Rutgers University website offers a risk tolerance quiz that identifies how comfortable you are with risk.
CalcXML.com (http://www.calcxml.com/do/inv08) determines your tolerance for risk by asking 10 questions about you, your financial situation, and how you would respond to several situations.
Your brokerage may also offer a tool for determining risk tolerance. For example, the Charles Schwab website has a risk profile questionnaire that analyzes your risk tolerance and investment timeframe to determine what type of investor you are.
Learn more about this topic from Personal Investing: The Missing Manual.
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