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Fat Tail Risk
The elevated probability of extreme outcomes compared to a normal distribution, reflecting the tendency of financial markets to experience more frequent large losses or gains than conventional models predict.
What is Fat Tail Risk?
The elevated probability of extreme outcomes compared to a normal distribution, reflecting the tendency of financial markets to experience more frequent large losses or gains than conventional models predict.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
