Fat tails
Real markets fall further and more often than the textbook bell curve predicts. A plan that allows for this shows the bad futures a tidier model hides.
L3Level 3 of 3 · no narrower concepts
What it rests on, and what rests on it
Rests on it
Nothing rests on it yet.
Where it is used
No article names it yet.
In the model
- The glossary's “Fat tails”
Sources
- Benoit Mandelbrot, The Journal of Business 36(4), The Variation of Certain Speculative Prices, 1963.