Risk Curve

Risk Curve is a two-dimensional plot of real or projected financial harm/risk versus real or projected financial reward. 

Risk Curve

Risk Curve is a two-dimensional plot of real or projected financial harm/risk versus real or projected financial reward. 

 


Explanation of Risk Curve

Risk Curve is 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.


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