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economic capital

Lenka2019

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

Nicole Seaman

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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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