Jerry-built

Cheap goods (WW1 pejorative for German)

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Risk-adjusted return on capital (RAROC)

Measures performance on a risk-adjusted basis. Calculated as the economic return divided by economic capital. RAROC helps determine if a company has the right balance between capital, returns and risk. The central concept in RAROC is economic capital: the amount of capital a company should put aside needed based on the risk it runs.


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