4 ms·
This strategy is often used in finance courses (in the context of portfolio optimization) as an example that very badly trips up conventional risk measures due
by conistonwater 11y ago
This strategy is often used in finance courses (in the context of portfolio optimization) as an example that very badly trips up conventional risk measures due to the very peculiar and ill-behaved risk distribution. Insurance companies depend on risk pooling, and bookmakers depend on running balanced books, which would distinguish them from this type of strategy.