Japan: Tail Risk Strikes Again
- Wednesday, March 16, 2011, 0:19
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They built the nuclear power plant in Japan to withstand a 7.9 earthquake and to withstand a tsumani of 6 meters. They figured it was highly unlikely that a quake could be of greater magnitude or a wave of greater height. Why worry about something that is off-the-scale in terms of risk? So the earthquake that hits is a 9.0 and the tsumani is 7 meters high.
http://blogs.forbes.com/johnnavin/2011/03/15/japan-tail-risk-strikes-again/
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