Black Swan Event

This problem checks whether you understand a core concept in capital markets and risk discussion, namely how to describe a rare event that is not expected under normal assumptions but can have outsized market impact. Interviewers ask this kind of question to see if you can communicate clearly about uncertainty, tail risk, and why standard forecasting models can fail when markets are hit by extreme shocks. It also tests whether you can connect a general concept to its practical importance for trading, risk management, and the broader financial system.