TL;DR - High-risk, high-reward investments are known as risk capital.
Helpfulness - 3
Tags - risk capital, high-risk, speculative investing, risk tolerance
- 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?
- 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.
Follow up links:
- Definition of risk capital, https://www.merriam-webster.com/dictionary/risk%20capital
- Speculative investing, https://www.investopedia.com/terms/s/speculation.asp