ABSTRACT
During the recent ‡nancial crisis, people who had up to that point invested in stocks and other ‡nancial products were caught shocked when they realized how quickly their money could be lost. Well meaning advisors, a”er the fact, told them that they should have known more about risk and how to deal with it. In this chapter, we will shed light on ways to deal with risks prudently, that is, in a manner by which a decision maker can survive economic losses.
