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What is the essential idea underlying Risk - adjusted return on Capital Models and how does...

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Finance

What is the essential idea underlying Risk - adjusted return onCapital Models and how does this model relate to the concept ofduration?

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Risk AdjustedReturn on CapitalThe Risk Adjusted Return on Capital RAROC models are used indiverse set of scenarios ranging from evaluating acquisitions toproject finance to equity and debt investments The fundamentalidea is to evaluate the return of the project after accounting forthe risk    See Answer
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