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The Expensive Sixth Point: Convexity, Thresholds, and the Price of Tail Risk

This story is from 2026-09-25. It is preserved in the archive; the latest stories are on the live feed.

Fat Tail Notes · Part 17 · V10-P5 Last week we argued that the disagreement over the Greenspan put is a measurement problem: expected welfare has no tail, and tail risk has no average. This week we price the tail properly, and the price turns out to be worse than the mean tells you. A -25% drawdown…

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  1. 2026-09-25 04:34 · DEV Community — AI
    The Expensive Sixth Point: Convexity, Thresholds, and the Price of Tail Risk

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