Figure 2.5 - Profit Model Graphic

This image shows the profit model. The box is labeled "Return" on the bottom horizontal line, and "Risk" on the left vertical line. there are a series of dashed and dotted lines showing risk vs. return within the box. Maximum Desired Risk is labeled with a horizontal red dotted line near the top of the box. Minimum Desired Return is labeled with a vertical green dotted line near the left of the box. A series of Xs are in the box--x sub 1 through x sub 6, with x sub 1 being to the left of Minimum Desired Return and near the bottom of the box. x sub 6 is above the line Maximum Desired Risk and to the far right of the box. The remaining Xs in this generic example are arranged to the right of Minimum Desired Return and below Maximum Desired Risk.