Terms Beginning With 'r'

Risk Curve

  • January 15, 2020
  • Team Kalkine

Risk Curve is typically a two-dimensional graphical representation which reflects the relationship between the risk and return of an asset. The graph plot the risk and reward (two-variable) and assist in identifying the optimal point where a unit of risk taken provides with at least a unit of reward. The method is generally used in the infamous beta model- Capital Asset Pricing Model.

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