Define and interpret skewness. Explain the meaning of a positively or negatively skewed return distribution. Describe the relative locations of the mean, median, and mode for a non-symmetrical distribution.
Kurtosis tells us something about the peakedness of a distribution; namely whether it is
more peaked than a normal distribution, i.e.
less peaked than a normal distribution, i.e.
peaked equally with a normal distribution, i.e.
Now we are talking about kurtosis in return distributions: