Creating a Risk/Reward Chart

The Risk/Reward scatterplot chart displays up to 100 items (99 securities + a benchmark index) with at least three years of investment history on an x/y axis. Each point on the Risk/Reward chart represents a holding and reveals the standard deviation and mean return figures for that holding.

A Risk/Reward chart can be created in multiple ways; from the top menu or from the Research, Workspace, or Portfolio Management tabs.

 

To create the Risk/Reward chart from the top menu:

  1. From the top menu of Morningstar Office, click on New, Charts, Risk/Reward to open the Select Investments dialog box.

  2. Select the method you will use to identify the investments for your chart.

    1. Under Name/Ticker/ISIN/CUSIP/SecId, select the following:

      • Single Investment and enter Investment Name/Ticker/ISIN/CUSIP/SecId into the text box, or

      • Multiple Investments and click OK to access the Find Investments dialogue box.

      • Click Search Criteria to enter a complex query to find a group of investments. When you click this option, click the arrow to select the investment universe you will search in. Click OK. The Search dialog box opens.

      • Click My Lists to select items from one of your saved investment lists. When you click this option, click the arrow to select which investment list you want to choose securities from.

  1. When you have selected the desired investments, click OK.

  2. The selected investments are displayed on the chart.

To create a Risk/Reward chart from the Research, Workspace, or Portfolio Management tabs:

  1. In the left navigation pane, click the Research, Workspace, or Portfolio Management tab.

  2. Drill down until you get to the list of investments.

    1. Under Research, select the Universe category, then the universe to open the associated investments.

    2. Under Workspace, go to Investment Lists, My Lists to open the associated investments.

    3. Under Portfolio Management, go to the Accounts or Securities in Accounts page to view the list of investments.

  3. Select up to 99 items.  

  4. From the Action menu, point to Charts (Portfolio Graphs in Portfolio Management, Accounts page), and click Risk/Reward. The chart appears with a default time period of three years.

  5. Point to a dot on the chart to view the fund name, three-year standard deviation and total return.

  6. Compare these investments to a benchmark if desire. Click the Crosshairs lookup icon to change the benchmark.

Note: When charting accounts, user-defined securities will not be charted.