(Intelligent Insurer) - A new research collaboration between Swiss Re and Waymo aims to study autonomous vehicles (AVs) to understand their behaviours and develop new risk assessment methodologies for the insurance industry.
September 28, 2022
For decades, financial risk modeling has been based on standard deviation assumptions, such as the Gaussian Distribution, modern portfolio theory, and bell curve risk models. While this approach works great in fields like science, it has shown significant shortcomings during extreme market events. Why?
just 10 stocks are currently responsible for around 80% of market movement, pushing the index to its highest concentration levels in 50 years. The conversation explains how the S&P 500's market-cap weighting amplifies this effect, making the index less diversified than it appears.