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8th Bowels Symposium

What Can Markets Tell About Rare Events?
Moderator / Presenter: Andrew Smith, Deloitte & Touche, London

Don’t miss out on this stimulating discussion on market prices vs. statistics. Economic capital seeks to capture all risks to which the company is exposed. Much statistical effort has been expended to quantify rare events. Market prices, however, tell a different story from the statistics. There is a market price to insure against company failure or extreme equity fall, but this price is normally much higher than statistical history would lead us to expect. Which then is the better arbiter of economic capital needs - market prices or statistics? Join this general session for a thought-provoking discussion.

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