Even the most sophisticated models—GARCH, stochastic volatility, jump-diffusion—fail to predict rare, high-impact events such as war breakouts, geopolitical attacks or sudden policy shocks. Academica…
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Even the most sophisticated models—GARCH, stochastic volatility, jump-diffusion—fail to predict rare, high-impact events such as war breakouts, geopolitical attacks or sudden policy shocks. Academica…