Risk and Reward Chart
A risk and reward chart allows you to visualize how combining asset classes together will affect
a portfolio. Essentially, it combines two asset allocations in 5% intervals and displays the standard
deviation and annualized return. An article explaing a risk and reward chart can be found here:
Use of a Risk and Reward Chart
INSTRUCTIONS: The form below requires you to enter two different portfolios. In both of the portfolios you can add one asset class or many. For example you could enter 100 Total Bond Market (TBM) in the first portfolio, and 100 Total Stock Market (TSM) in the second portfolio. This would produce a graph that starts with 100% TBM and in 5% increments adds the TSM. This would allow you to visualize risk and reward profiles associated with various TBM and TSM allocations. The data used comes from these data sources and is from the years 1972-2008.