Risk Adjusted Return on Capital

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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).

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Risk-Reward Ratio			Risk adjusted return on capital (RAROC)--a measure of profitability of a business activity based on whether its return on capital is above or below its equity hurdle rate--is 20 percent. Study: P/C Business Is Still Overcapitalized by Myshko, Denise / Risk & Insurance Regions is managing its loan growth with an intense focus on risk and risk adjusted return on capital. Regions Reports Third Quarter 2008 Earnings by Business Wire It provides predictive modeling on risk adjusted return on capital (RAROC), a key measure that helps insurers measure their entire risk portfolio on a consistent basis, then link those risks to the amount of capital they need to hold. The What-if Challenge by STARNER, TOM / Risk & Insurance			Rio Trade Riochi riparian owner riparian rights Riporto da esercizi precendenti Ripple Riscatto di debiti Rischio di credito Risco cambial Risco de deterioracao de conjuntura Risco de insolvencia Risco externo Risco-Pais Rise Riserva obbligatoria Riserva presa a prestito Risico voor de koper Risiko Risikomanagement Rising Bottom Rising Bottoms Rising Market Rising-Coupon Security risk risk adjusted Risk Adjusted Return on Capital Risk Arbitrage Risk Aversion Risk Capital Risk Classes Risk controlled arbitrage Risk Factor Risk Graph Risk Hedge Risk Indexes Risk Lover risk management Risk Manager Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate			RISIT RISJ risk risk risk risk risk risk risk Risk & Insurance Risk & Opportunity Assessment Process Risk & Prevention Risk (Futures) Risk (Futures) Risk Accumulation Risk Acknowledgement Agreement risk adjusted Risk Adjusted Contributed Value Risk Adjusted Discount Rate Risk Adjusted Discount Rates Risk Adjusted Dynamic Alpha Strategy Risk Adjusted Hurdle Rate Risk Adjusted Lease Book Risk Adjusted Measure of Outcome Risk Adjusted Multiple Capital Asset Allocation Program Risk Adjusted Performance Risk Adjusted Performance Risk Adjusted Performance Measure Risk Adjusted Performances Risk Adjusted Return Risk Adjusted Return on Capital Risk Adjusted Returns Risk Adjusted Value Risk Adjustment and Hierarchical Modeling Risk Adjustment Factor Risk Adjustment in Congenital Heart Surgery Risk Advisory Group Risk Advisory Services Risk analysis Risk analysis Risk analysis Risk analysis Risk analysis (psychology) Risk analysis (psychology) Risk Analysis and Cost Management Risk Analysis and Decision Making Risk Analysis and Management for Critical Assets Protection Risk Analysis and Management for Projects Risk Analysis for ITS Deployment Risk Analysis for Phytophthora Ramorum A Risk Analysis Management System Risk Analysis Program Risk Analysis Questionnaire Risk Analysis Testing Laboratory Risk Analysis, Communication, Evaluation and Reduction Risk Analysis/Level of Test Tool Risk Analysis/Vulnerability Assessment Risk Analyst Workbench Risk and Capital Committee

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