Get information about the new Actuarial syllabus of CM2 which was formerly CT8. CM2 was introduced under new Actuarial curriculum by Institute. Actuarial Core Mathematics 2 is all about..
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For CM2 or for CT8, it means..shreyanshh wrote:So if the kurtosis is big, we can say that our data set has many outliers.
Am i correct?
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For investors, high kurtosis of the return distribution implies that the investor will experience occasional extreme returns (either positive or negative), more extreme than the usual + or - three standard deviations from the mean that is predicted by the normal distribution of returns. This phenomenon is known as kurtosis risk.
But yes you are right in general sense. kurtosis is a measure that describes the shape of a distribution's tails in relation to its overall shape.
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