Last week, I wrote about risk and probability and how risk measures from ‘thin-tailed’ events and ‘fat-tailed’ events cannot be compared. As it happened, over the next few days, there were a series of articles and analyses in the global financial press that showed how little this point is understood. Bloomberg, a financial news service, carried an article headlined ‘Argentina’s Massive Sell-Off Had a 0.006% Chance of Happening’. It then went on to say that “there was a 99.994% probability that a ..
Nine big financial changes that you must watch out for in October
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