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Are the Returns of Your Fund Manager Platykurtic or Leptokurtic?

If you do not know the answer or, even worse, if the manager does not know the answer, then you may be up for surprises in the future, pleasant or unpleasant. Most fund managers focus on return and risk as measured by volatility and ignore two other metrics that are also important, kurtosis and skewness. More importantly, a web search reveals that there are confusing accounts about the significance of those metrics.

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