Risk Curve

A risk curve visually illustrates the trade-off between risk and return for an investment on a graph. Typically, the horizontal x-axis represents the risk level, while the vertical y-axis represents the expected return. The curve demonstrates that lower-risk investments plotted to the left may yield lower expected returns, while riskier investments plotted to the right may offer greater expected returns. Risk curves can encompass multiple data points representing different asset types or individual investments.