Calculate the expected RAROC for this project.
A. 9.5%
B. 10.9%
C. 13.6%
D. 15.6%
Answer:B
Calculate the expected RAROC for this project.
A. 9.5% B. 10.9% C. 13.6% D. 15.6%
Explanation: RAROC is equal to: After-tax risk-adjusted net income / Economic capital. This can also be expressed as: