Shortly after the small island of Balamia experienced multiple unexpected high-intensity earthquakes that caused massive destruction,many banks and insurance companies filed for bankruptcy.This left the economy of the country in a poor state.The natural calamity in Balamia best exemplifies
A) a black swan event.
B) a wild card event.
C) skewness risk.
D) kurtosis risk.

Question

Quizplus · Accepted Answer

The natural calamity in Balamia best exemplifies a black swan event. The metaphor of a black swan describes the high impact of a highly improbable event.

Shortly After the Small Island of Balamia Experienced Multiple Unexpected