Bill Winterberg
Aug 22, 2017 · 1 min read

Should this be (Assets + Time)/Liabilities? As liabilities (the denominator) grow, the ability to take risk decreases, so the two are inversely correlated. Also, when the value of all liabilities approaches zero, then the ability to take risk is nearly infinite, as there are no future liabilities that remain outstanding.

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    Bill Winterberg

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    Vlogger. #fintech commentator. Sometimes simultaneously.

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