Insurance typically benefits risk-averse individuals by pooling finite-mean risks. However, with infinite-mean distributions (e.g., Pareto, Fréchet), risk sharing can backfire, creating a "nondiversification trap." This applies to highly skewed distributions like Cauchy or catastrophic risks with infinite losses. Open questions remain about these complex scenarios.
top of page
Rechercher
Posts récents
Voir tout“As analysts are primary recipients of these reports, we investigate whether and how analyst forecast properties have changed following...
This study proposes a new method for detecting insider trading. The method combines principal component analysis (PCA) with random forest...
Cyber risk classifications often fail in out-of-sample forecasting despite their in-sample fit. Dynamic, impact-based classifiers...
bottom of page
Comments