Slide 17 of 62
Notes:
In my mind, however, it is the third moment, or the measure of the asymmetry of the distribution that deserves the greatest attention when thinking of risk. An understanding of this is what enables one to take “thoughtful risk,” whatever that is.
This is the property that causes us to examine the relativity of the “up” side versus the “down” side -- to select projects, actions, etc that provide a fruitful asymmetry -- to recognize, and perhaps even control, the downside loss of seeking a treatment
