What is Risk Curve?

A risk curve is a visual depiction of the trade-off between the risk and return for an investment on a graph. Generally, the horizontal x-axis is a measurement of the risk level, while the vertical y-axis is a measurement of the expected return. The curve implies that lower-risk investments plotted to the left might generate a lesser expected return, and that riskier investments plotted to the right might generate a greater expected return. Risk curves can contain multiple data points that represent different asset types or individual investments.