Normal distribution: related pages
Black swan
An event that is highly improbable (and unforeseen and therefore omitted from models) that nonetheless occurs and has a significant impact.
CAPM
A method of valuing securities or an investment using a discounted cash flow (DCF) using a risk adjusted discount rate.
Fat tails
A fat tailed probability distribution is one in which extreme events are more probable.
Modern/Markowitz portfolio theory
The theory concerning the value and riskiness of portfolios as opposed to individual securities.
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