What does RAROC mean? What is the full form of RAROC?
The Full Form of RAROC is Risk-adjusted return on capital.
Risk-adjusted return on capital (RAROC) is a modified return on investment (ROI) figure that takes elements of risk into account. In financial analysis, projects and investments with greater risk levels must be evaluated differently; RAROC thus accounts for changes in an investment’s profile by discounting risky cash flows against less-risky cash flows.
RAROC
means
Risk-adjusted return on capital
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