The study looked at stock market risks in Brazil and Mexico using a method called Extreme Value Theory. This method helps predict extreme losses in the stock market by analyzing unusual fluctuations. The researchers found that traditional risk models often underestimate potential losses because they assume normal market behavior. By using Extreme Value Theory, they were able to get more accurate estimates of potential risks in these emerging markets. The results showed that both Brazil and Mexico have fat tails in their stock market returns, meaning there are more extreme fluctuations than expected. Overall, the study suggests that Extreme Value Theory provides a better understanding of financial risks in these markets compared to traditional methods.