Mesokurtic

DEFINITION of 'Mesokurtic'

A term used in a statistical context where the kurtosis of a distribution is similar, or identical, to the kurtosis of a normally distributed data set. Kurtosis is a measure of a distribution's peak, which means how much of the distribution is centered on the distributions mean.

The kurtosis coefficient of a normal distribution is 3.

BREAKING DOWN 'Mesokurtic'

Kurtosis is a measure of how extreme observations are in a data set. The greater the kurtosis coefficient, the more peaked the distribution around the mean is. Also, this distribution has fatter tails, which means there is an increase tail risk (extreme results).

When a distributions kurtosis coefficient is greater then 3, the distribution is leptokurtic, and when it's less then 3, its platykurtic.

RELATED TERMS
  1. Kurtosis

    A statistical measure used to describe the distribution of observed ...
  2. Excess Kurtosis

    A statistical term describing that a probability, or return distribution, ...
  3. Leptokurtic

    A statistical distribution where the points along the X-axis ...
  4. Platykurtosis

    A statistical measure that indicates the level of peakedness ...
  5. Normal Distribution

    A probability distribution that plots all of its values in a ...
  6. Platykurtic

    A type of statistical distribution where the points along the ...
Related Articles
  1. Investing

    What a Normal Distribution Means

    Normal distribution describes a symmetrical data distribution, where most of the results lie near the mean.
  2. Trading

    Trading With Gaussian Models Of Statistics

    The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications.
  3. Investing

    Find The Right Fit With Probability Distributions

    Discover a few of the most popular probability distributions and how to calculate them.
  4. Investing

    Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.
  5. Investing

    What is Descriptive Statistics?

    Descriptive statistics is the term applied to meaningful data analysis.
  6. Trading

    A Simplified Approach To Calculating Volatility

    Though most investors use standard deviation to determine volatility, there's an easier and more accurate way of doing it.
  7. Trading

    Understanding Statistics

    Statistics provide the means to analyze data and then summarize it into a numerical form.
  8. Managing Wealth

    Using Normal Distribution Formula To Optimize Your Portfolio

    Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk.
  9. Investing

    A Simplified Approach To Calculating Volatility

    Volatility is sometimes greater than anticipated, but the way it’s measured can compound the problems that occur when it’s unexpected.
  10. Retirement

    Stretch Your Savings By Working Into Your 70s

    Staying employed a little longer may allow for a more comfortable retirement.
RELATED FAQS
  1. Can I elect to NOT have income tax withheld from an IRA (NOT ROTH) distribution before ...

  2. Is my non-qualified Roth IRA distribution subject to taxes or early distribution ...

    The ordering rules must be applied to determine whether the distribution is subject to income taxes and/or the early distribution ... Read Answer >>
  3. What does Value at Risk (VaR) say about the "tail" of the loss distribution?

    Learn about value at risk and conditional value at risk and how both models interpret the tail ends of an investment portfolio's ... Read Answer >>
  4. Can I replace the $7,000 in Jan 2016 and avoid paying taxes on the $7,000 excess ...

    I closed an IRA account in Jan 2015 and received $9,000. I forgot that and withdrew my required $7,000 minimum distribution ... Read Answer >>
  5. I have an IRA with after-tax money in it. How do I avoid being taxed again?

  6. What are the exceptions to the early distribution penalty for a non-qualified Roth ...

    The exceptions are as follows: The distribution is made on or after the date you reach age 59.5 The distribution is made ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center