Risk Capacity

In financial terms, risk capacity denotes the ability of a person or entity to cope with the risk posed by an investment. Risk capacity is determined by the income and assets of the person or entity involved.

You can find your risk capacity by estimating how much money you could afford to lose without your budget and standard of living being affected.

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Risk tolerance
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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.

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