DEFINITION of 'Mesokurtic'
Mesokurtic is a statistical term used to describe the outlier (or rare, extreme data) characteristic of a probability distribution. A mesokurtic distribution has similar extreme value character as a normal distribution. Kurtosis is a measure of tails, or extreme values, of a probability distribution. With greater kurtosis, extreme values (e.g., values five or more standard deviations from the mean) occasionally occur.
BREAKING DOWN 'Mesokurtic'
Distributions may be described as mesokurtic, platykurtic and leptokurtic. Mesokurtic distributions have a kurtosis of zero, matching that of the normal distribution, or normal curve, also known as a bell curve. In contrast, a leptokurtic distribution has fatter tails. This means that the probability of extreme events is greater than that implied by the normal curve. Platykurtic distributions, on the other hand, have lighter tails, and the probability of extreme events is lesser than that implied by the normal curve. In finance, the probability of an extreme event that is negative is called "tail risk."
Risk managers also must be concerned about probability distributions with "long tails." In a distribution with a long tail, the probability of a highly extreme event is nonnegligible.
Kurtosis is an important concept in finance because it affects risk management. Investment returns are assumed to be distributed normally, that is, to be distributed in a normal, bellshaped curve. In reality, returns fall into a leptokurtic distribution, with "fatter tails" than the normal curve. This means that the probability of large losses or large gains is greater than would be expected if returns matched a normal curve.

Platykurtosis
Platykurtosis is a statistical term that refers to the relative ... 
Excess Kurtosis
Excess kurtosis describes a probability distribution with fat ... 
Long Tail
The long tail is a strategy that allows businesses to realize ... 
Uniform Distribution
In statistics, a type of probability distribution in which all ... 
Distribution
Distribution occurs when a mutual fund, company or retirement ... 
Distribution Management
Distribution management refers to overseeing the movement of ...

Investing
Most Common Probability Distributions
In this article, we'll go over a few of the most popular probability distributions and show you how to calculate them. 
Trading
Trading with Gaussian models of statistics
The study of statistics originated from Carl Friedrich Gauss and helps us understand markets, prices and probabilities, among other applications. 
Investing
What's Skewness?
Skewness describes how a data distribution leans. 
Investing
Lognormal and normal distribution
When and why do you use lognormal distribution or normal distribution for analyzing securities? Lognormal for stocks, normal for portfolio returns. 
Investing
Optimize your portfolio using normal distribution
Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk. 
Investing
Fat Tail Risk Makes Global Warming Scarier
The cost of global warming does not take into account climate changerelated catastrophes. Here's where fattail distributions come in. 
Investing
Bond yield curve holds predictive powers
This measure can shed light on future economic activity, inflation levels and interest rates. 
Investing
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario.

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 >> 
What is the current yield curve and why is it important?
Understand what the current yield curve represents, and learn how market analysts commonly interpret various changes in the ... Read Answer >>