keep getting results about plane/car crashes…
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In economics, the crash rate is the likelihood that a given stock or another financial asset will experience a sudden, sharp decline in value. This can happen for various reasons, such as a downturn in the economy, a decline in the company’s earnings, or a change in investor sentiment. The crash rate is often used by investors and analysts to assess a particular stock or asset’s riskiness and can help make investment decisions.
The crash rate is typically measured as the probability that a stock or asset will decline by a certain percentage within a given time period. For example, a stock with a crash rate of 20% over the next year means a 20% chance that the stock will decline by at least that much within the next year.
The crash rate is often calculated using historical data, such as past stock performance or economic indicators, and can be used in conjunction with other metrics, such as the stock’s volatility or beta, to help assess the riskiness of an investment. It’s important to note that the crash rate is not a guarantee of future performance and can only estimate the likelihood of a crash based on past data.
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