Summary

This chapter added another core capability to our Robo-advisor toolkit. We started by revising some key terminology for risk profiling in risk tolerance, risk capacity, and risk scores. We then proceeded to create our first risk questionnaire by creating the necessary objects to store this information.

First, we took some illustrative example questions from online sources for risk tolerance and risk capacity. From there, we added a key ability to read questions and answers from a spreadsheet to load into our Python code, giving us greater flexibility in modifying our questionnaire when needed.

To complete our required capabilities, we also added an interactive program to answer those questions in Google Colab, making the experience more dynamic. Finally, we added one last helper method to our main RiskQuestionnaire class to calculate a risk score based on our answers. This we will keep for later.

Now, let’s proceed to the beating heart of a Robo-advisor: the...