Skewness, Kurtosis & the Lognormal Distribution | CFA® Program Level I

Skewness, kurtosis and the lognormal distribution explained visually, on real S&P 500 returns: fat tails and Black Monday. ▶ Try a full module of our Level I platform free: https://sharpeandclear.com/go/q3 ▶ The full Level I course, all 10 topics: https://sharpeandclear.com/?src=yt-q3 ▶ New to log returns? Continuous Compounding & Annualized Returns:    • Continuously Compounded Returns, ln and e,...   ▶ All Level I Quantitative Methods videos:    • Level I Quantitative Methods, Explained Vi...   Chapters 0:00 Intro: Black Monday and the bell curve 1:34 Our platform 2:12 The bell curve: mean, median, mode and standard deviation 3:06 Skewness: which side has the long tail 4:18 Kurtosis and excess kurtosis: fat tails 6:38 The lognormal distribution: why prices stay above zero 9:34 Exam-style practice questions 11:07 Recap: skewness, kurtosis and the lognormal on one card For CFA® Program Level I candidates and finance students: skewness (the long tail's side, the mean against the median), kurtosis and excess kurtosis on real S&P 500 returns, and the lognormal distribution of prices (why they stay above zero); two exam-style practice questions. Educational content only, not investment advice. Data: S&P 500 daily closes (public data); Black Monday's figures: Federal Reserve History and the public list of the S&P 500's largest daily changes; our calculations. Every other example is invented. Not affiliated with or endorsed by CFA Institute. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. #Skewness #Kurtosis #CFALevel1