Behavioral finance research has established that investors dislike negative skewness because it exposes them to rare but severe losses, while they embrace positive skewness because it offers the chance of occasional outsized gains — the lottery-like appeal that persists even when expected payoffs are modest. In behavioral models, this preference for positively skewed assets bids [...] Skewness as a Hidden Driver of Anomaly Returns was originally published at Alpha Architect . Please read the Alpha Architect disclosures at your convenience.

• Description is available (+5)