A risk structure that spreads investor's risks across low-, medium-, and high-risk vehicles. The bulk of the assets are in safe, low-risk investments that provide a predictable return (base of the pyramid). At the top of the pyramid are a few high-risk ventures that have a modest chance of success.
Nearby TermsFinancial price risk Financial public relations Financial pyramid Financial ratio Financial risk
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University