BIT Orientation Quiz

This document is a BIT Orientation Quiz that assesses an individual's financial management skills and investor type. The quiz consists of 10 multiple-choice questions that cover various aspects of financial decision-making. By taking this quiz, individuals can determine whether they are a guardian, trader, researcher, or advice taker when it comes to managing their money. The quiz also explores individuals' attitudes towards risk, following a plan, and seeking advice from others. This document is relevant for students studying finance or anyone interested in understanding their financial management style.

Assignment 2
Appendix 1: BIT orientation quiz
Pompian, M 2012, Behavioural finance and investor types: managing behaviour to make better
investment decisions, John Wiley & Sons, Hoboken, NJ, pp. 93–94.
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BIT orientation quiz
1. My main role in managing my money is:
A To be the guardian of my wealth by not making risky investments.
B Actively trading my account to accumulate wealth.
C Doing research before investment decisions.
D Listening to others for advice on managing money.
2. When it comes to financial matters, I most agree with which statement?
A Losing money is the worst possible outcome.
B I should act quickly on opportunities to make money.
C I need to be satisfied I have taken the time to understand an investment I plan to
make, even if I miss opportunities by doing so.
D I should not be in charge of overseeing my money.
3. When deciding on an investment, I trust the advice of:
A My own self-discipline.
B My own instincts.
C My own research.
D Someone other than myself.
4. When markets are going up, I am:
A Relived.
B Excited.
C Calm and rational.
D Glad I am following someone’s advice.
5. In the financial realm, which word best describes you?
A Guardian.
B Trader.
C Researcher.
D Advice taker.
6. When it comes to following a plan to manage money, which best describes
your thinking?
A If following a plan will help safeguard my assets, I will do it.
B Following a plan is not that important.
C A plan is good, but investment decisions must include my thinking.
D I tend to follow others’ advice; so if a plan is recommended to me I will follow it or
I will just listen to others’ ideas.
7. I feel most confident about my money when:
A I can sleep at night knowing my assets are safely invested.
B I am invested in assets that have high appreciation potential.
C I make my own investment decisions or at least have input into the process.
D I am invested in things that many others are invested in.
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8. When a friend suggests a ‘sure thing’ investment idea, my response normally is:
A I typically avoid these types of ideas.
B I love things like this and I can take action right away if needed.
C I will do my own research and then decide what to do.
D I will need to consult someone else before making a decision.
9. Short-term fluctuations in my portfolio make me:
A Panic, thinking about selling.
B Sense opportunity, thinking about buying.
C Feel in control, potentially doing nothing.
D Want to call someone to see how my money is going.
10. Imagine yourself at a sporting event. Which role are you most likely to play?
A A defensive player.
B An offensive player.
C Strategist or coach.
D Fan.
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