Statistical measures of a distribution of outcomes. The main moments used are the mean, variance, third moment, and fourth moment. The mean is a measure of the centre or average outcome. The variance is a measure of the spread of outcomes. The third moment measures the skewness (asymmetry) of a distribution. The fourth moment measures the kurtosis (sharpness or flatness) of the distribution. Moments are often used in considering the distribution of the returns on investment.
Subjects: Financial Institutions and Services.