Chance-Adjusted Return on Capital (RAROC) Outlined & Gadget
What Is Risk-Adjusted Return On Capital (RAROC)? 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