Risk Curve

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Dictionary Says

Definition of 'Risk Curve'

A two-dimensional 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 Says

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 decision-making tool.
Search results for

'Risk Curve'

  • CFA Level 1 Study Guide - Fixed Income Investments - Yield Curve ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/yield-curve-risk.asp
    Learn how yield curve risk can affect your bond portfolio and how the various
    shifts in the yield curve relate to interest-rate risk. ...

  • Stock Market Risk: Wagging The Tails

    http://www.investopedia.com/articles/financial-theory/09/bell-curve-wag-tails.asp
    The bell curve is an excellent way to evaluate stock market risk over the long term. ...

  • The Impact Of An Inverted Yield Curve

    http://www.investopedia.com/articles/basics/06/invertedyieldcurve.asp
    ... An inverted curve eliminates the risk premium for long-term investments, allowing
    investors to get better returns with short-term investments. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Assumptions ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/traditional-yield-curve-measures-assumptions.asp
    ... Call and Prepayment Risk; 14.11 Reinvestment Risk; 14.12 Yield Curve Risk;
    14.13 Credit Risk; 14.14 Liquidity Risk; 14.15 Exchange-Rate ...

  • CFA Level 1 Study Guide - Macroeconomics - Phillips Curve ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/phillips-curve.asp
    ... Call and Prepayment Risk; 14.11 Reinvestment Risk; 14.12 Yield Curve Risk;
    14.13 Credit Risk; 14.14 Liquidity Risk; 14.15 Exchange-Rate ...

  • An Introduction To Value at Risk (VAR)

    http://www.investopedia.com/articles/04/092904.asp
    ... It then assumes that history will repeat itself, from a risk perspective. ... return
    and a standard deviation - which allow us to plot a normal distribution curve. ...

  • Managing Interest Rate Risk

    http://www.investopedia.com/articles/optioninvestor/08/manage-interest-rate-risk.asp
    ... see evidence of the pitfalls of ignoring the daunting threat of interest rate risk. ...
    was great - short-term rates fell and the normal yield curve was maintained ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Reinvestment ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/reinvestment-risk.asp
    ... Call and Prepayment Risk; 14.11 Reinvestment Risk; 14.12 Yield Curve Risk;
    14.13 Credit Risk; 14.14 Liquidity Risk; 14.15 Exchange-Rate ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Credit Risk ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/credit-risk.asp
    ... Call and Prepayment Risk; 14.11 Reinvestment Risk; 14.12 Yield Curve Risk;
    14.13 Credit Risk; 14.14 Liquidity Risk; 14.15 Exchange-Rate ...

  • CFA Level 1 Study Guide - Financial Ratios - Financial Risk Ratios ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/financial-risk-ratios.asp
    ... Call and Prepayment Risk; 14.11 Reinvestment Risk; 14.12 Yield Curve Risk;
    14.13 Credit Risk; 14.14 Liquidity Risk; 14.15 Exchange-Rate ...

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