In economics and finance, a holy grail distribution is a probability distribution with positive mean and right fat tail — a returns profile of a hypothetical investment vehicle that produces small returns centered on zero and occasionally exhibits outsized positive returns. The distribution of historical returns of most asset classes and investment managers is negatively skewed and exhibits fat left tail (abnormal negative returns).
In economics and finance, a holy grail distribution is a probability distribution with positive mean and right fat tail — a returns profile of a hypothetical investment vehicle that produces small returns centered on zero and occasionally exhibits outsized positive returns. The distribution of historical returns of most asset classes and investment managers is negatively skewed and exhibits fat left tail (abnormal negative returns).
Source: Wikipedia "Holy grail distribution" · CC BY-SA 4.0
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