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, ...

Monte Carlo simulation is a technique used to demonstrate risk and a range of possible outcomes, in which a financial plan is put through thousands of possible return paths for the portfolio to ...

The World Science Festival's panel on Probability and Risk started out in an unusual manner: MIT's Josh Tennenbaum strode onto a stage and flipped a coin five times, claiming he was psychically ...

Risk isn’t merely about the odds of winning. It’s about the severity of loss when things go wrong. The low-leverage index outperformed the high-leverage index by 103% over the decade, and surpassed ...

Ruin probability quantifies the risk that an insurer or financial institution’s liabilities may exceed its assets, ultimately leading to insolvency. Recent advancements in risk management have ...

Lenders use some common measures to predict how risky a borrower might be Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam holder, and currently holds a Life, Accident, and ...

Operational risk is one of the influential risks identified by banking practitioners, and as the international banking supervisor, the Basel Committee on Banking Supervision has paid special attention ...

This article was written by Jerome Barkate, Nakul Nair, Zane Van Dusen, and Scott Coulter. We are witnessing a remarkable period in the credit markets. Following years of accommodative monetary ...

Forbes contributors publish independent expert analyses and insights. author of Chained to the Desk in a Hybrid World: A Guide to Balance. A new study by DJC Law sought to identify the most dangerous ...