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As the manager of a hedge fund, your yearly investment strategy entails a large left-tail risk such that you have a 5% chance each year
As the manager of a hedge fund, your yearly investment strategy entails a large "left-tail" risk such that you have a 5% chance each year of suffering insolvency. What is the probability that you can operate for 5 or more years without going insolvent? a. 25.0% b. 75.0% c. 77.4% d. 90.4% e. 95.1%
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