By JM
The Center Can Hold: More on Playing with Tails
Every time series of prices reflects the ongoing valuation of worldviews in a collective sense. These prices can be used to generate a probability distribution that reflects that worldview. Is it best to buy the tails that reflect extreme events, or to be long the center, where the majority of views dominate?
Buying the tails is a barbell. Buying the center is well, a center bet. Which is best?
Here is an approximate answer
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