Author： Rebonato Riccardo
Publisher： Henry Stewart Publications
ISSN： 1752-8887
Source： Journal of Risk Management in Financial Institutions, Vol.3, Iss.2, 2010-01, pp. : 148-155
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
This paper argues the case that, when it comes to the management of financial risk, it is essential to provide interpretative models of reality (data do not ‘speak by themselves’); that these interpretative models are not unique; that too little attention has been devoted to explaining rather than describing; and that the existence of a number of competing views of the world can give rise to co-ordination among traders. The implications of this for the distribution of returns are highlighted. The limits of purely statistical descriptions of risk in terms of marginal or joint distributions of risk factors are also discussed.
Related content
Access to resources
Recommend
