Leptokurtosis and Lessee: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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Leptokurtosis is observed in many financial distributions.
In a lease contract, the user of the leased asset.
 
It means a more ‘pointy-headed’ and ‘fat tailed’ observed distribution, compared with the distributions predicted by the normal and lognormal models.
 
 
Importantly, there is a fatter downside tail (‘left tail’) in the observed data.
 
In other words the observed frequency of large negative returns (or results) is greater than predicted - for example - by the lognormal model of the distribution assumed in the Black Scholes option pricing model.
 
 
Because of leptokurtosis, Value at Risk models which use a normal frequency distribution will understate the Value at Risk.




== See also ==
== See also ==
* [[Black Scholes option pricing model]]
* [[Lease]]
* [[Fat tail]]
* [[Lessor]]
* [[Leptokurtic frequency distribution]]
* [[Lognormal frequency distribution]]
* [[Normal frequency distribution]]
* [[Tail]]
* [[Value at risk]]


[[Category:The_business_context]]
[[Category:The_business_context]]

Latest revision as of 06:59, 29 June 2022

In a lease contract, the user of the leased asset.


See also