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Maybe I'm dumb, but why is "performance fat-tailed"? It was kinda left as an exercise to the reader, but maybe someone has insight. The article got a bit edited
by whymauri 8y ago
Maybe I'm dumb, but why is "performance fat-tailed"? It was kinda left as an exercise to the reader, but maybe someone has insight. The article got a bit edited, but I'm still not getting it.
- amasad 8y agoIn other words it's pareto distribution. Most of the scientific citations goes to the 1% of scientists. Most of the success in business goes to the 1% of companies/entrepreneurs. In Taleb's words: we live in extremistan.
- whymauri 8y agoGot it, this was helpful as was the answerer below. Thank you guys!
- pps43 8y agoTaleb is coming from the quant world. A trader can make or lose a lot of money, and that distribution of returns is fat-tailed, as exemplified by 2008 crisis.