DEFINITION of 'Risk Curve'
A twodimensional plot of real or projected financial harm/risk (vertical axis) versus real or projected financial reward (horizontal axis). Generally speaking, the curve balloons when the underlying item offers greater returns and contracts when it offers lower returns compared to risk.
INVESTOPEDIA EXPLAINS 'Risk Curve'
Risk curves can be plotted using practically anything for variables, as the very existence of a curve tends to suggest a relationship or correlation. A risk curve allows for an instant summation of the risks involved in a particular endeavor, making it very easy to use as a decisionmaking tool.
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Systematic Risk
The risk inherent to the entire market or entire market segment. ... 
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What are the benefits of using ceteris paribus assumptions in economics?
Most, though not all, economists rely on ceteris paribus conditions to build and test economic models. The reason they do ... Read Full Answer >> 
What is the difference between the rule of 70 and the rule of 72?
The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. ... Read Full Answer >> 
What is the risk return tradeoff for bonds?
Macaulay duration and modified duration are mainly used to calculate the durations of bonds. The Macaulay duration calculates ... Read Full Answer >> 
What is the formula for calculating the capital to risk weight assets ratio for a ...
Use the Macaulay duration to calculate the duration of a zerocoupon bond. The resulting Macaulay duration of a zerocoupon ... Read Full Answer >> 
How do I calculate how long it takes an investment to double (AKA 'The Rule of 72') ...
You can calculate the approximate amount of years it would take an investment to double, given the annual expected rate of ... Read Full Answer >> 
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