risk adjusted return on capital (RAROC)


Definition
RAROC. A financial measurement that allows analysts to take into account the effect of risk when comparing profitability and performance across various businesses. It is calculated by dividing the risk adjusted return (net income - expected loss from risk + income from capital) by the economic capital. Higher risk projects tend to bring higher rewards.

Related Personal Finance Articles

Loading...

risk adjusted return on capital (RAROC) in the news

Loading...

risk adjusted return on capital (RAROC) is ...

... part of the Earnings subject.

Search volume for risk adjusted return on capital (RAROC)

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z