and risks. This has been amplified by the lack of a sound operational risk estimate due to the scarcity of the relevant … Dragon Kings regime for the largest events. With respect to risk assessment, our main finding is that risk is dominated by …

in risk premia; or the irrational exuberance of investors, bidding prices up and down even in the absence of changes in … such changes in uncertainty would generate through sentiments or risk premia. I then apply this framework to the S&P 500 …, the negative correlation between movements in uncertainty and in implied risk premia) is not compatible with rational …

priced risk factor and differentiation between specific and common uncertainty important. Our results are robust across …