NNT spoke earlier this year at the Goldstone Forum at the University of PA.The video lecture is here.
(This is the first publicly available NNT talk in some time. I’m going to leave it on the front page for a week or so.)
NNT spoke earlier this year at the Goldstone Forum at the University of PA.The video lecture is here.
(This is the first publicly available NNT talk in some time. I’m going to leave it on the front page for a week or so.)
Hi John. Taleb mentions in the video that risks increase in the long-term. We have been programmed to think that risk (in the stock market anyways) in the long-run decreases over time. I was on Professor Zvi Bodie’s website, and there was an article that mentions he did a study using the Options Pricing Model, and noticed that put option premiums increased, not decreased over time to protect a portfolio. Also, if stocks were to rise with certainty over time, then the equity risk premium would not exist.