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.

Kurtosis
Kurtosis is a statistical measure used to describe the distribution ... 
Excess Kurtosis
Excess kurtosis describes a probability distribution with fat ... 
Probability Distribution
A probability distribution is a statistical function that describes ... 
Symmetrical Distribution
Symmetrical distribution is evident when values of variables ... 
Distribution
Distribution occurs when a mutual fund, company or retirement ... 
Distribution Yield
A distribution yield is a measurement of cash flow paid by an ...

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
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
Bond yield curve holds predictive powers
This measure can shed light on future economic activity, inflation levels and interest rates. 
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
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Financial Advisor
How to Save Clients from RMD Aggregation Mistakes
Advisors can help clients avoid required minimum distribution mistakes in their retirement plans. 
Investing
The impact of an inverted yield curve
Understand how the relationship between short and longterm interest rates contributes to an inverted yield curve – a noteworthy economic event. 
Financial Advisor
Stretch Your Savings By Working Into Your 70s
Staying employed a little longer may allow for a more comfortable retirement.

What is the difference between term structure and a yield curve?
Understand the difference between the term structure of interest rates and a yield curve, if any. Learn what the yield curve ... Read Answer >>