Lumifer comments on "Risk" means surprise - LessWrong

6 Post author: PhilGoetz 22 May 2015 04:47AM

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Comment author: Lumifer 22 May 2015 03:12:42PM 1 point [-]

In the context of financial markets, risk = variance from the mean

That it not true, or, rather, not entirely true. VAR is very widely used in the real world and it's not variance. I also think Taleb would facepalm at this definition X-)