Skewness and Kurtosis as Applied to a Portfolio in the Korean Stock Market

A well diversified portfolio is critical to prudent investment in a stock market. To lessen risk in a volatile market, portfolios should minimize dispersion. This paper analyzes skewness and kurtosis of businesses listed on Korean stock markets, e.g., KOSPI and KOSDAQ. It looks at distribution using the Gauss function, and examines how mean and variance can be applied in building a portfolio.