What is the after-tax risk-adjusted return on capital (RAROC) for this loan?
A. 3.9%
B. 4.7%
C. 5.5%
D. 8.3%
Answer:C
What is the after-tax risk-adjusted return on capital (RAROC) for this loan?
A. 3.9% B. 4.7% C. 5.5% D. 8.3%
Explanation: C is correct. The risk-adjusted after-tax return on capital (RAROC) is computed by: