Measures of Uncalculated Risk? Simulating investment value at risk under uncertainty with fuzzy cognitive maps based on non-probabilistic narratives. KU Leuven
Operations Management Research Group (main work address Leuven), Finance Research Group (main work address Leuven)
Mainstream asset valuation models typically neglect idiosyncratic (i.e. firm-specific) risk. In contrast, recent research finds that real-life investors do care about asset-specific risks and shows that idiosyncratic risk factors do influence asset prices in many securities markets. At the same time, other contemporary researchers have succesfully applied textual analysis techniques to company disclosures and other news sources to estimate ...