Knightian Uncertainty in Finance: Living at the Edge

Since the dawn of time, human beings have been enthralled with risk. Laced with equal parts promise and danger, risk is simultaneously exciting and unnerving. It is the thread making up the financial markets and human life at large — inextricably binding us all to nature’s game of chance. Risk is a gleaming double-edged sword, both the origin of fortune and the fount of adversity. It is one of the…