# Excess kurtosis

**Definition:** [crh] Kurtosis measures the "fatness" of the tails of a distribution. Positive excess kurtosis means that distribution has fatter t**Definition:** ails than a normal distribution. Fat tails means there is a higher than normal probability of big positive and negative returns realizations. When calculating kurtosis, a **Definition:** result of +3.00 indicates the absence of kurtosis (distribution is mesokurtic). For simplicity in its interpretation, some statisticians adjust this result to zero (i.e. kurtosis minus 3 equals zer**Definition:** o), and then any reading other than zero is referred to as excess kurtosis. Negative numbers indicate a platykurtic distribution; positive numbers indicate a leptokurtic distribution.

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