Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. food enterprises is analysing the performance of t

Food Enterprises is analysing the performance of their retail business and have calculated Value At...

60.1K

Verified Solution

Question

Accounting

Food Enterprises is analysing the performance of their retail business and have calculated Value At Risk at $17,350,000 under the statistical method at a 95% confidence level, and a mean of $898,000. The Net Profit of the retail business for the current financial year was $1,750,000 and is estimated to be $2,000,000 for the next financial year. Food Enterprises has a required rate of return of 8%. What is the RAROC to one decimal place?

Select one:

a. 16%

b. 6.9%

c. 11.1%

d. 12.1%

with steps plz

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students