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But in May, the firm lost $1.1 billion, even though the firm's risk calculations predicted the maximum possible loss would be $350m.
The reported figure of $1.25 trillion for the fund's investments is misleading, because it counts many complicated derivative positions at the so-called "nominal value," which is far greater than the maximum possible loss.
Trading desks would estimate the maximum possible loss on risky assets, hedge it and then record the net risk as minimal, inadvertently concealing huge tail risks in the gross exposure.
If Alico's entire portfolio had blown up that year, the maximum possible loss — a little more than $1 billion — would not have wiped out the company's total reported surplus of $7 billion.
To accomplish this, the concept of Value at Risk (VaR) was first applied to present the maximum possible loss of power generation schedules, and then an extreme value theory-genetic algorithm (EVT-GA) was proposed to solve the model.
Mrs Hemming added: "These men were involved in a calculated and sophisticated plot to create a terrorist event of major proportions, working alongside others who were determined to bring down aircraft using homemade explosives, causing the maximum possible loss of life.
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Many of the subprime mortgages had been financed through the securitization market, where a wondrous financial alchemy enabled risky investments to be transformed into supposedly safe investments rated AAA by the bond rating agencies, whose calculations of maximum possible losses turned out to have been woefully low.
In parallel, the approach implements the minimax principle, in which agents seek to bound uncertainty by minimizing maximum possible losses while seeking to gain large profits (Epstein 2001).
A total of 210 patients will be recruited to detect a non-inferiority margin of 15% between the two treatments with a minimum power of 80% considering an alpha error of 2.5% for a unilateral hypothesis and maximum possible losses of 15%.
Considering a success rate of 85% for the group treated with amoxicillin [ 20, 21] a total of 105 patients will be required in each treatment group (total of 210) to detect a non-inferiority margin of 15% at maximum between the two treatments with a minimum power of 80% considering an alpha error of 2.5% for a unilateral hypothesis and maximum possible losses of 15%.
Because the steady state operating temperature of each pore-scale SAGD test was kept relatively constant during each experiment, one can calculate the instantaneous heat loss by multiplying the maximum possible heat loss by the fraction of the model surface area which is exposed to the radiation heat loss.
More suggestions(15)
maximum expected loss
maximum possible growth
maximum possible increase
maximum possible speed
maximum possible efficiency
maximum possible diversity
maximum possible variance
maximum possible contribution
maximum possible degree
maximum possible difference
maximum possible reduction
maximum possible weight
maximum possible variation
maximum possible response
maximum possible entropy
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com