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Risk–return spectrum and Risk-adjusted return on capital

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Risk–return spectrum and Risk-adjusted return on capital

Risk–return spectrum vs. Risk-adjusted return on capital

The risk–return spectrum (also called the risk–return tradeoff or risk–reward) is the relationship between the amount of return gained on an investment and the amount of risk undertaken in that investment. Risk-adjusted return on capital (RAROC) is a risk-based profitability measurement framework for analysing risk-adjusted financial performance and providing a consistent view of profitability across businesses.

Similarities between Risk–return spectrum and Risk-adjusted return on capital

Risk–return spectrum and Risk-adjusted return on capital have 3 things in common (in Unionpedia): Risk, Risk-free interest rate, Sharpe ratio.

Risk

Risk is the potential of gaining or losing something of value.

Risk and Risk–return spectrum · Risk and Risk-adjusted return on capital · See more »

Risk-free interest rate

The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

Risk–return spectrum and Risk-free interest rate · Risk-adjusted return on capital and Risk-free interest rate · See more »

Sharpe ratio

In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance of an investment by adjusting for its risk.

Risk–return spectrum and Sharpe ratio · Risk-adjusted return on capital and Sharpe ratio · See more »

The list above answers the following questions

Risk–return spectrum and Risk-adjusted return on capital Comparison

Risk–return spectrum has 33 relations, while Risk-adjusted return on capital has 23. As they have in common 3, the Jaccard index is 5.36% = 3 / (33 + 23).

References

This article shows the relationship between Risk–return spectrum and Risk-adjusted return on capital. To access each article from which the information was extracted, please visit:

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