Tail risk

From ACT Wiki
Revision as of 21:47, 8 September 2021 by Doug Williamson (Talk | contribs) (Add link.)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

The risk of adverse consequences from a 'tail event'.

Financial markets tend to have 'fat tails', meaning both the likelihood and the size of potential losses and other adverse consequences are systematically underestimated.


See also