Estimating the likelihood of catastrophic events, and particularly terrorist attacks, is extremely important. But in general, these catastrophes are outliers in whatever situation we are looking at.

This is a preview. Log in through your library . Abstract Most climate impact studies rely on changes in means of meteorological variables, such as temperature, to estimate potential climate impacts, ...

What Are Risk-Neutral Probabilities? Risk-neutral probabilities are probabilities of potential future outcomes adjusted for risk, which are then used to compute expected asset values. In other words, ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of ...