Theory of Risk Capital in Financial Firms

By Robert C. Merton and Andre F. Perold · Journal of Applied Corporate Finance · 1993 · ILA201-800-25

A 1993 article in the Journal of Applied Corporate Finance that develops a concept of risk capital that can be applied to the financing, capital budgeting and risk management decisions of financial firms. The development focuses particularly on firms that act as a principal in the ordinary course of business.

On the syllabus

Exam ILA-201U — Outcomes 2d; ILA201-800-25, the whole article (as the syllabus states it)

Contents unavailable The article is published by the journal and no free copy could be found. This page records its citation, abstract and assignment from the CAS abstract record and the syllabus.

Sources

Theory of Risk Capital in Financial Firms (Casualty Actuarial Society abstract record) — the abstract (principal activities can be asset-related, liability-related, or both), the authors, the year 1993 and the journal; the article itself was not read, and the link the record gives is to the publisher's abstract page
SOA Exam ILA-201U Syllabus, 2026-2027 — the citation (ILA201-800-25: Theory of Risk Capital in Financial Firms) and the outcome it serves; the syllabus names no author, so the match is by title