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NORM—towards a new financial paradigm: Behavioural finance with news-optimized risk management

Mark Vreijling and Thomas Dohmen

NORM is a financial service industry initiative supported by the European Union. NORM aims to enhance market risk assessment metrics by using semantically analysed news-based information. This will compensate for the inflexibility of existing models with regard to strong market fluctuations or market instability and give more dynamic, more reliable market risk estimation.

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