Exercise

# Third moment: Skewness

To calculate the *third moment*, or **skewness** of a returns distribution in Python, you can use the `skew()`

function from `scipy.stats`

.

Remember that a negative skew is a right-leaning curve, while positive skew is a left-leaning curve. In finance, you would tend to want positive skewness, as this would mean that the probability of large positive returns is unusually high, and the negative returns are more closely clustered and predictable.

`StockPrices`

from the previous exercise is available in your workspace.

Instructions

**100 XP**

- Import
`skew`

from`scipy.stats`

. - Drop missing values in the
`'Returns'`

column to prevent errors. - Calculate the skewness of
`clean_returns`

.