Publication Type

Journal Article

Publication Date

3-2012

Abstract

The economic wreckage from the 2008 global financial crisis dealt a blow to the theoretical foundations of finance and economic. Many of these theories, such as Markowitz’s Modern Portfolio Theory (MPT), were considered received wisdom and taught in practically all business schools. But now they appeared inadequate to the task of handling the “fat-tails” and “black swans” of extreme market events. These crashes were also occurring far more often than predicted by these theories.

Disciplines

Finance | Growth and Development

Licece/Creative Commons Licence

Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Subject(s)

Basic or Discovery Scholarship

Additional URL

https://www.smu.edu.sg/perspectives/all

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