risk-adjusted return on risk-adjusted capital (RARORAC)
Risk-adjusted return on risk-adjusted capital (RARORAC) is the combination of risk-adjusted return on capital (RAROC) and return on risk-adjusted capital (RORAC) in which both the numerator and denominator are adjusted (for different risks).
risk-adjusted return on risk-adjusted capital (RARORAC)
Risk-adjusted return on risk-adjusted capital (RARORAC) is the combination of risk-adjusted return on capital (RAROC) and return on risk-adjusted capital (RORAC) in which both the numerator and denominator are adjusted (for different risks).
Additional Information
This is a term used in the financial services industry and in enterprise risk management.
