A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2017; you can also visit the original URL.
The file type is
Some researchers have recently criticized using the normal distribution for modeling stock returns. While it's true that the normal distribution is inappropriate and leads to the extreme outliers, known as the Black Swans problem, other elliptical distributions allow addressing this issue. The Student's t-distribution with 3 to 4 degrees of freedom and the Laplace distribution both can be used to largely eliminate Black Swans in daily returns. Both distributions are compatible with the moderndoi:10.2139/ssrn.1989084 fatcat:bk4uirsyave7fiferg7ogfugvy