Risk Adjusted Return on Capital
(redirected from Raroc)

Also found in: Acronyms, Wikipedia

0.01 sec.

Risk Adjusted Return on Capital

A measure of the profitability of an investment or business after accounting for its risk. This can help inform one's investment decisions. It is calculated as follows:

RAROC = ( revenue - expenses - expected loss + income from capital invested ) / capital

It should be noted that an investment's RAROC has become a less common measure than the risk adjusted return on risk adjusted capital (RARORAC).

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Risk-Reward Ratio			Meanwhile, the RAROC or risk adjusted return of capital, is used to analyse the risk-adjusted financial performance of an enterprise and to provide a view of profitability. Eva and Raroc in Banking Performance Metrics by Sam Miller / Business community Next Areas of Focus As opposed to mentioning ultimate objectives, such as estimating enterprise-wide RAROC by relationship and line of business, it is more useful to think in terms of lower-level tactics. The risk manager of the future: scientist or poet? (Notes and Issues) by Falkenstein, Eric / Appraisal Journal With bank capital allocated under the more disciplined RAROC approach, company bank groups get smaller, the study says. Strategies for improving credit access: A study by the FEI research ... by Graziano, Cheryl de Mesa / Financial Executive			Random Access File Random Digit Dialing Random Variable Random Variance Random Walk Random Walk Theory Random walk with drift Random-Number Generation Random-Number Generator Random-Walk Hypothesis Randomization Randomized strategy range Range Forward Rangebound Rank Correlation Rank in Person Rank-and-File Ranking RAP Rappel de salaire Rappen Rapport Rapport annuel Rapport coutefficacite Raroc Ratable Ratable Value Rate Rate Anticipation Swap Rate Anticipation Swaps Rate Base Rate Book Rate Capping Rate Card Rate Covenant rate guarantee Rate Holder rate improvement mortgage Rate Lock Rate Making Rate of Change Rate of Effective Protection Rate of Exchange Rate of Interest Rate of Mudharaba rate of return rate of return of investment Rate of return ratios Rate Protection Rate Relief			Raritan Canal Raritan Computer, Inc. Raritan Remote Client Raritan River Rail Road Raritan Township Municipal Utilities Authority Raritan Valley Community College Raritan Valley Disposal Raritan Valley Flying School Raritan Valley Habitat for Humanity Raritan Valley Montessori Academy Raritan Valley Mothers of Multiples Raritan Valley Road Runners Raritan Valley Symphonic Band Raritan Valley Technology Group, Incorporated rarities rarities rarity rarity rark up RARL RARM RARMP RARMS RARN RARO RARO RARO RARO RAROA Raroc RAROLC RARORAC Rarotonga Rarotonga Rarotonga Island Rarotonga Island Rarotonga, Cook Islands - Rarotonga Rarotongan Rarotongan Rarotongans Rarotongans RARP RARP RARPA RARPD RARR RARS RARS RART RARU rarus Rarytkin RAS RAS RAS RAS Ras (disambiguation) Ras (disambiguation) Ras (disambiguation) Ras Addar

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.

Risk Adjusted Return on Capital (redirected from Raroc)

Risk Adjusted Return on Capital
(redirected from Raroc)