"The Riff" with Byrne Hobart and Erik Torenberg cover image

E13: Corporate Mortality, Momentum Investing, and Learning From Extreme Events

"The Riff" with Byrne Hobart and Erik Torenberg

00:00

Extreme Events and Power Law Distribution

This chapter explores the power law distribution of extreme events and the implications for options pricing. It discusses the market crash of 1987 and how it affected implied volatilities. The chapter also examines the value of learning from extreme failures and how they can inform decisions about responsibilities and capital allocation.

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