I illustrate how to manually calculate skew and kurtosis with Google's daily price data from 2007. The point is the variance, skew and kurtosis are each related MOMENTS of the distribution. A normal distribution has skew = 0 and kurtosis = 3
I don't know if its applied here... but the mean of that normal distribution is not just µ (the arithmatic mean), but µ-s²/2 where s = stdev... like it saids in Hull's book on derivatives...
Good stuff, good stuff. Making my risk-filled life 95% easier
ATreasonable 4 months ago
What the heck is a kurtosis?
ShadowDemon1779 5 months ago
Loving u, my mentor always!
MrLifesstyle 1 year ago
Loving u, my mentor always!
MrLifesstyle 1 year ago
Any way I could get a copy of this spreadsheet?
AWN92 2 years ago
Any way I could get a copy of this spreadsheet?
AWN92 2 years ago
What are the 'moments'?
rightsideofwrong 2 years ago
I don't know if its applied here... but the mean of that normal distribution is not just µ (the arithmatic mean), but µ-s²/2 where s = stdev... like it saids in Hull's book on derivatives...
Riverdale270 2 years ago
my mentor forever, thank you
leledong 3 years ago
thank you so much, so much clearer than my book haha
VaKaBonSenTi 3 years ago