Risk Capital by James Chen

TL;DR - High-risk, high-reward investments are known as risk capital.

Helpfulness - 3

Tags - risk capital, high-risk, speculative investing, risk tolerance

Questions answered:

  • What does risk capital refer to?
  • What percentage of an investor’s portfolio should be allocated for risk capital?
  • What are common uses of risk capital?

Summary:

  • Risk capital is used for high risk, high-reward investments.
  • An investor’s risk tolerance plays a large role in determining their risk capital.
  • Uses include speculative investments in stocks/commodities, PE, and angel investing.

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