What is a 'Probability Distribution'
A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range. This range will be between the minimum and maximum statistically possible values, but where the possible value is likely to be plotted on the probability distribution depends on a number of factors, including the distributions mean, standard deviation, skewness and kurtosis.
BREAKING DOWN 'Probability Distribution'
Academics and fund managers alike may determine a particular stock's probability distribution to determine the possible returns that the stock may yield in the future. The stock's history of returns, which can be measured on any time interval, will likely be comprised of only a fraction of the stock's returns, which will subject the analysis to sampling error. By increasing the sample size, this error can be dramatically reduced.
There are many different classifications of probability distributions, including the chi square, and normal and binomial distributions.

Normal Distribution
A probability distribution that plots all of its values in a ... 
Mesokurtic
A term used in a statistical context where the kurtosis of a ... 
Excess Kurtosis
A statistical term describing that a probability, or return distribution, ... 
Kurtosis
A statistical measure used to describe the distribution of observed ... 
Sampling Distribution
A probability distribution of a statistic obtained through a ... 
Standard Error
The standard deviation of the sampling distribution of a statistic. ...

Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Professionals
Distribution of Returns
Distribution of Returns 
Term
What a Normal Distribution Means
Normal distribution describes a symmetrical data distribution, where most of the results lie near the mean. 
Forex Education
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. 
Professionals
Common Probability Distribution Properties
CFA Level 1  Common Probability Distributions  Properties 
Professionals
Skew And Kurtosis
CFA Level 1  Statistical Concepts And Market Returns  Skew And Kurtosis 
Professionals
Common Probability Distributions
CFA Level 1  Common Probability Distributions  Basics 
Professionals
Confidence Intervals
CFA Level 1  Common Probability Distributions  Confidence Intervals 
Professionals
Sampling and Estimation
CFA Level 1  Sampling and Estimation sampling error, in depth information on confidence intervals and tdistributions 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario.

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