Risk Intelligence Quotient

Risk Intelligence Quotient (RQ) is a measure of a person’s ability to estimate probabilities accurately.

People with high risk intelligence tend to make better predictions than those with low RQ.

There is five minute test at http://www.projectionpoint.com/index.php which will measure your RQ. For what it's worth, my score was 81.

The Office for National Statistics carried out a study a few years back, which included these two questions: Choose from A) A guaranteed payment of £1,000 or B) A 1 in 5 chance of winning £10,000.

Would you rather receive £1,000 today or £1,100 next year?

The results show that people were predominantly averse to risk and had short time horizons financially.

More than three-quarters (78 per cent) of people said they would choose to receive a guaranteed payment of £1,000 rather than take a one in five chance of winning £10,000, while 22 per cent preferred the option of winning £10,000.

Similarly, 80 per cent of people said they would rather receive £1,000 today than £1,100 next year, while 20 per cent said they would rather receive £1,100 next year.