Akademik

risk-adjusted rate of return
The profit, often but not always expressed as a percentage rate of return on allocated capital, after recognizing applicable costs for credit risk, interest rate risk, liquidity risk and/or other financial risks. In some measures, risk costs are treated as expenses. In other measures, they are reflected in the amount of capital allocated in the denominator of the return on capital ratio. American Banker Glossary

Financial and business terms. 2012.