DISTRIBUTION MOMENTS AND EQUILIBRIUM: REPLY.

This article presents the author's reply to a comment made about the paper "Distribution Moments and Equilibrium." The author clears up a misinterpretation that was made in the comment about the assumed choice an investor makes. The author presents a new diagram showing the changes the occur as investors change their holdings of a risk-free security. The author also addresses the conclusion made in the note which relates to an investor expanding their borrowings and portfolio indefinitely. The author presents an additional diagram refuting this notion.