Risk-Adjusted Return On Capital - RAROC
  
See: Risk-Adjusted Return. Same thing.
When you risk capital, you have to be rewarded for taking a lot of risk by having the opportunity to win at least as much on the upside.
See: Risk-Adjusted Return. Same thing.
When you risk capital, you have to be rewarded for taking a lot of risk by having the opportunity to win at least as much on the upside.