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return on risk-adjusted capital (RORAC)

A tool used to analyze the risk involved in an investment by taking into consideration the amount of capital required. RORAC is an essential tool in risk management as it identifies the risk level of various investments, thereby providing businesses with the necessary information to decide the level of risk it is able to take.

Related information about return on risk-adjusted capital (RORAC):
  1. Return On Risk-Adjusted Capital (RORAC) Definition | Investopedia
    A rate of return used in financial analysis, whereby riskier projects and investments are evaluated based on the capital at risk. RORAC makes it easier to ...
     
  2. Risk-adjusted return on capital - Wikipedia, the free encyclopedia
    Note, however, that more and more return on risk adjusted capital (RORAC) is used as a measure, whereby the risk adjustment of Capital is based on the capital ...
     
  3. Rorac Definition from Financial Times Lexicon
    Return on risk adjusted capital (rorac): is a measure that puts more emphasis on the total riskiness of the project. In rorac, the capital is adjusted for risk rather ...
     
  4. return on risk-adjusted capital (RORAC) - Insurance Glossary
    return on risk-adjusted capital (RORAC)- A target return on equity (ROE) measure in which the denominator is adjusted depending on the risk associated with ...
     
  5. The Economic Capital and Risk Adjustment Performance
    concept of FVORAC, various Risk-Adjusted Performance Measurements are defined as: ▫ Return on Risk-Adjusted Capital(RORAC). = Income Gain(t) / EC(t,α) ...
     
  6. What is return on risk-adjusted capital (RORAC)? - InvestorWords.com
    Definition of return on risk-adjusted capital (RORAC): A tool used to analyze the risk involved in an investment by taking into consideration the amount of capital ...
     
  7. Return On Risk-Adjusted Capital - RORAC Definition | Finance ...
    Return On Risk-Adjusted Capital - RORAC Definition | Also find the definitions of each and every financial term right here at Finbox.
     
  8. Download Presentation 1 - Casualty Actuarial Society
    May 19, 2008 ... Return on Risk-Adjusted Capital (RORAC). Theoretically required capital, not actual! Indicated Price is price to achieve target ROE; Target ROE ...