Kristina Zucchi is an investment analyst and financial writer with 15+ years of experience managing portfolios and conducting equity research. Gordon Scott has been an active investor and ...

Normal distribution, also known as the Gaussian distribution, is a probability distribution ... skewed and with fatter tails. Therefore, relying too heavily on a bell curve when making predictions ...

A bell curve is a graph ... of σ increases, the normal distribution becomes more spread out. Specifically, the peak of the distribution is not as high, and the tails of the distribution become ...

Traditional strategies of asset pricing often rely on a normal bell curve to make market ... By definition, a fat tail is a probability distribution which predicts movements of three or more ...