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Model issue 2007 crisis

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Hi David,
In meissner readings you have mentioned that in 2007 crisis, model for volatility and correlation was not a problem.. It was the inputs to these models that was problem, garbage in garbage out..

The I was reading crouchy in ops risk (model risk), from what I understand is that the model gave incorrect values of correlation and vol..and hence incorrect price..so is the model incorrect or assumption incorect?

Kavita
 
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