# Convexity

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## Convexity

Property that a curve is above a straight line connecting two end points. If the curve falls below the straight line, it is called concave.

## Convexity

Describing a curve segment whose ends fall above an arbitrarily set straight line. Convex properties are important to charting; for example, when tracking a stock market's performance, a rise in the chart with respect to the previous day's close followed by a correction going down to but not necessarily meeting that close may be described as a convex curve. See also: Concave.

## convexity

A mathematical measure of the sensitivity of a bond's price to changing interest rates. A high convexity indicates a greater responsiveness of a bond's price to interest rate changes.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Calculations are made for various cases in which the initial forms of the arctic front are different and contained convexities with distinct shapes.
CT scan brain was done which showed oedema in bilateral cerebral convexities and posterior fossa with effacement of basal cisterns and compression of the fourth ventricle.
The thin alloplast carrier helps to provide a smooth-appearing dorsum postoperatively by evening out the concavities and convexities that commonly occur in the natural surface shape of auricular cartilage.
Obviously Van Gogh was thinking of the nude and not the draped figure when he was deliberating on these problems, since it is the nude, whether male or female, in stone, bronze or in painting which has always symbolised mankind in a state of nature with its complex physical volumes, convexities and concavities.
External examination showed focal areas of yellow exudate on the convexities and multiple bilateral infarcts affecting the cortices, pons, thalamus, middle temporal gyms, and putamen.
(7.) Gagnon and Johnson (1994) and Barber and Copper (1997) have demonstrated that matching the convexities of asset and liability does not always improve the immunization results.

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