Extreme-Events

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August 31, 2024 3 min read Definitions

Black Swan Events: Rare, Unpredictable Events with Dramatic Effects

Economics Finance Risk Management Black Swan Risk Unpredictable Events Extreme-Events Taleb

Black Swan Events are rare, unpredictable events with dramatic effects, which are often embedded within the tails of distributions. This term is crucial in understanding extreme risk and uncertainty in various fields such as Finance, Economics, and beyond.

August 31, 2024 4 min read Definitions

Fat Tail: Understanding Extreme Events in Probability Distributions

Mathematics Statistics Finance Probability Distribution Extreme-Events Finance Risk Management

Fat Tail refers to probability distributions where extreme events have a higher likelihood than normal. Explore the types, importance, and real-world applications.