What Does Risk Adjusted Return on Risk Adjusted Capital Mean?
What does Risk Adjusted Return on Risk Adjusted Capital mean? Read on to discover the definition & meaning of the term Risk Adjusted Return on Risk Adjusted Capital - to help you better understand the language used in insurance policies.
Risk Adjusted Return on Risk Adjusted Capital
A 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). This is a term used in the financial services industry and in enterprise risk management (ERM).
We hope the you have a better understanding of the meaning of Risk Adjusted Return on Risk Adjusted Capital.
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