Risk Adjusted Return On Capital: It gives us a clear understanding of risk and reward on capital used and, therefore, it provides a good measure of performance across all business units and business activities. It is defined as a ratio of expected risk adjusted net income, net of taxes to economic capital expressed in percentage. If a bank’s RAROC is higher than the cost of bank’s equity, then the bank is deemed to be adding value to shareholders (economic value added).
A and B started a business with investments in the ratio of 8:9 respectively. If after three year, the profit earned by A is Rs. 1600, then find the tot...
In a joint business venture, 'A' contributes Rs. 2400, which is 25% less than 'B’s investment. While 'A's investment lasts for 8 months, 'B' only inve...
Makhan Lal started a business with the capital investing Rs 18,400. After 6 months Arvind Lal invested Rs 16200. At the end of one year they made a prof...
Three friends, Aman, Bheema, and Chetan, together invested a total of Rs. 9400. After one year, they received profits of Rs. 1440...
'A' and 'B' started a business with an investment of Rs. 2,000 and Rs. 2,500, respectively. After 6 months, 'C' joined them with an investment of Rs. 3,...
A and B together starts a business with investment of Rs. 800 and Rs. (x + 600), respectively. If the profit earned after 5 years is Rs.3200 and share o...
A invested Rs. X in a scheme. After 6 months, B joined with Rs 4000 more than that of A. After an year, ratio of profit of B to the total profit was 3: ...
A, B and C invested in partnership. A invest Rs.10000 for 4 months, B invests Rs.8000 for 3 months and C invests Rs.14000 for 2 months. C is working par...
‘A’ and ‘B’ started a business by investing Rs. 5000 and Rs. 6500, respectively. 12 months later, ‘C’ joined the business by investing Rs. 8...
Amit and Shikha initiated a business, with Shikha investing Rs. 6,000 more than Amit. After one year, Amit added Rs. 4,000 more to his initial investmen...