European equity risk levels have undergone extreme variations since the late 1990s, and have shown several distinct behavioural shifts over the past two decades. In this changeful environment, near-term (several-month) and long-term (annual) realised risk often differ markedly. Investors with different investment horizons consequently have different risk-forecasting needs. Near-term investors require risk forecasts that respond aggressively to recent events. Long-term investors are likely to...