The Second Moment

faj.v65.n1
  1. Poor
  2. Satisfactory
  3. Good
  4. Very Good
  5. Excellent

Be the first. (0 ratings)

Financial Analysts Journal
January/February 2009 | Vol. 65 | No. 1 | 3 pages
Source: CFA Institute
Don Ezra

US$0.00 Member | US$0.00 Candidate | US$15.00 Nonmember

Read

Summary

This brief article discusses the statistical “second moment” that measures the variability in a distribution. Over the years, society’s focus has expanded from looking only at first moments to considering second moments. A consideration of second moments of the distributions of an array of economic variables can aid in understanding societal concerns about outcomes and risk tolerance following the recent global financial crisis. Such an understanding provides a basis for interpreting the use of various mechanisms, including prudent asset allocation, options, regulation of the freedom to make contracts, state participation in markets, and taxation.

View more information

Topics
Credits · About the CE Program
1 CE (including 0 SER) Manage CE Credits

People who viewed this page also viewed:

Article
Are Cash Flows Better Stock Return Predictors Than Profits?
CFA Institute: Financial Analysts Journal
Article
News vs. Sentiment: Predicting Stock Returns from News Stories
CFA Institute: Financial Analysts Journal
Article
Inefficiencies in the Pricing of Exchange-Traded Funds
CFA Institute: Financial Analysts Journal

Loading ...