Mesokurtic

AAA

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.

INVESTOPEDIA EXPLAINS '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. Leptokurtic

    A statistical distribution where the points along the X-axis ...
  2. Platykurtic

    A type of statistical distribution where the points along the ...
  3. Probability Distribution

    A statistical function that describes all the possible values ...
  4. Normal Distribution

    A probability distribution that plots all of its values in a ...
  5. Kurtosis

    A statistical measure used to describe the distribution of observed ...
  6. Tail Risk

    A form of portfolio risk that arises when the possibility that ...
Related Articles
  1. Find The Right Fit With Probability ...
    Fundamental Analysis

    Find The Right Fit With Probability ...

  2. Bet Smarter With The Monte Carlo Simulation
    Active Trading Fundamentals

    Bet Smarter With The Monte Carlo Simulation

  3. An Introduction To Value at Risk (VAR)
    Options & Futures

    An Introduction To Value at Risk (VAR)

  4. How To Convert Value At Risk To Different ...
    Active Trading Fundamentals

    How To Convert Value At Risk To Different ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center