It has been suggested that in light of recent and past financial shocks and crashes, B-S distributions are too narrow and need to be adjusted. In other words we need to re adjust our risk distributions so that they capture the increased liklelyhood of extreme events occuring. This would help us in having a more secure portfolio when the bad things do happen.
I think that we should do this for IQs of people, as TW highlights the chance of meeting very very very dumb people is much higher than you would think.
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