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economic capital

Lenka2019

New Member
1.31 Could you please explain the purpose of economic capital, why isn't is to absorb unexpected loss and tail loss?
 

Nicole Seaman

Chief Admin Officer
Staff member
Subscriber
1.31 Could you please explain the purpose of economic capital, why isn't is to absorb unexpected loss and tail loss?
Hello @Lenka2019

Can you please let us know if you are referring to a specific source (you've placed 1.31 at the beginning)? If this is a practice question from that source, please include the full question and answer. We really need you to be more specific when asking questions, especially if you are referring to a specific source. It is much easier for people to answer questions if they have the full source that you are referring to. Thank you.

Updated to note that I've sent a private message to you because you have posted numerous new threads like this in the forum.
 
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