Question: Explain why when a distribution is positively skewed, standard deviation overestimates risk?

Explain why when a distribution is positively skewed, standard deviation overestimates risk?

Step by Step Solution

3.43 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The positive skewness of a distribution indicates that an investor may expect frequent s... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!