What is the risk-adjusted return on capital for this loan?
A. A. 9.5%
B. B. 10.5%
C. C. 26.5%
D. D. 35.5%
Answer:C
What is the risk-adjusted return on capital for this loan?
A. A. 9.5% B. B. 10.5% C. C. 26.5% D. D. 35.5%
Explanation: The risk-adjusted return on capital (RAROC) is computed by: