Financial markets may be more prone to sharp swings than traditional theory suggests

Financial markets may be more prone to sharp swings than traditional theory suggests

From the 2008 financial crash to today's volatile cryptocurrency markets, sharp fluctuations continue to disrupt global markets and economies. According to Masoumeh Fathi's doctoral dissertation at the University of Vaasa, traditional risk models often underestimate the possibility of extreme events, leaving investors and policymakers unprepared.