Risk-bearing capacity

The ability of an investor to take a certain risk in an investment without getting into financial difficulties in the event of losses. In other words, the investor should have adequate and sufficient liquidity at all times. – See risk-return principle, risk investor, risk-bearing capacity. – Cf. BaFin Annual Report 2008, p. 56 (liquidity risk management regulations).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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