Risk-Bearing Abilities

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In the general framework for mapping resources proposed by Benoit F Leleux the following points are made with respect to Risk-Bearing Abilities:

  • Capital suppliers differ in their abilities to actually take on risk
    • Where risk means the ultimate returns they will make on their investment
  • Risk profiles range from:
    • Risk aversion
    • Complete risk sharing
  • Investors will aim for diversifies portfolios
    • To seek uncorrelated risk and thereby minimizing it.


Part of: General framework for mapping resources