Thursday, November 3, 2005

Higher moments and finance

Incorporating Higher Moments into Financial Data Analysis--James M. SfiridisOh boy, here we go! Hold on tight and let's tag along for the ride. This could change some things!Virtually everything we do with respect to risk and return centers on the assumption of normality (that is that the normal distribution correclt explains returns, or minimally the log of returns).The problem is nearly

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