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Statistical terms sound more scary than they need to and kurtosis is
a perfect example. Just remember fourth power and three is normal.

Intermediate

Kurtosis is a measure of the weight in the tails of a distribution, often described as how peaked a distribution appears. A normal distribution has a kurtosis of 3, so many times kurtosis is reported as excess kurtosis, or the difference from 3. It is often called the fourth moment because it is generated from calculations to the fourth power.

Synonym: excess kurtosis

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False. Stock returns tend to have fatter tails and higher kurtosis

**Guy: **The
kurtosis * for the
distribution is 1.15, and I think it's fair to assume that that's
excess.*

**Bud: ***It's also fair to assume this whole
discussion about kurtosis, to me, is excess.*

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Keywords:

kurtosis

distribution

stock returns

peak

normal distribution

statistical measure

fourth moment

excess kurtosis

fourth power

risk measure

fat tails