The use of variance of returns in standard portfolio theory depends on whether the return distribution is symmetric with fat-tails.

Name: The use of variance of returns in standard portfolio theory depends on whether the return distribution is symmetric with fat-tails.
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The use of variance of returns in standard portfolio theory does not depend on the return distribution being symmetric with fat-tails; it uses variance as a measure of risk regardless of the distribution shape.

The Use of Variance of Returns in Standard Portfolio Theory