a. What does it mean that a return distribution has a fat tail? b. What is the

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a. What does it mean that a return distribution has a fat tail?

b. What is the implication if a return distribution is assumed to be normally distributed but is in fact a fat-tailed distribution?

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Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

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Question Posted: Mar 02, 2024 05:00 AM

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a. What does it mean that a return distribution has a fat tail? b. What is the

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a Fat Tail In finance and statistics a fat tail refers to the shape of the distribution of returns or outcomes in a dataset Specifically it describes ...View the full answer

Foundations Of Financial Markets And Institutions

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