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Comment on 'Black swans' and 'perfect storms' become lame excuses for bad risk managementparent

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In an 'efficient' market all future risk is included in the analysis of current value meaning that if it was an 'efficient' market this would actually not be a problem.

The EMH claims that all future time discounted risk known to market participants is included in the analysis of current value.

If you want to show the markets are not efficient, go achieve excess risk-adjusted returns. The sole claim of the EMH is that you can't do that. The EMH doesn't claim that market participants will not take risks, nor does it claim that investors/customers will not apply time discounting to those risks.

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