3 ms·
That's an expensive bet if your model parameters are off by just a little bit.
by runnerup 5y ago
That's an expensive bet if your model parameters are off by just a little bit.
- deleted 5y ago[deleted]
- toomuchtodo 5y agoMost risk is manageable, tail risk is unavoidable. You can do everything right and still have a government put you out of business or have the market move against you in a way you couldn’t have predicted. With that said, the theory is sound based on existing economic conditions. 75% of coal generators in the US and roughly 45% globally operate unprofitably, for example (per Bloomberg NEF).