The European Central Bank stipulates that a financial system is stable if the financial risks are evaluated and rewarded correctly and if the economic and financial shocks are absorbed. When analyzing the return and volatility of the stock exchanges we may ascertain that a stock exchange is...

This paper is aimed at analyzing the main problems concerning fat-tailed asset return distributions. In doing so, a sample of Colombian stock returns over a period of time ranging from 2001 to 2010 is considered. The main conclusion drawn from this case study is that any model facing...

This paper is aimed at analyzing the main problems concerning fat-tailed asset return distributions. In doing so, a sample of Colombian stock returns over a period of time ranging from 2001 to 2010 is considered. The main conclusion drawn from this case study is that any model facing...