Food Enterprises is analyzing the performance of their retail business and have calculated Value At Risk at $17,350,000 under the statistical method at a 95% confidence level, and a mean of $898,000. The Net Profit of the retail business for the current financial year was $1,750,000 and is estimated to be $2,000,000 for the next financial year. Food Enterprises has a required rate of return of 8%. What is the RAROC to one decimal place?

Select one:

a. 16%

b. 6.9%

c. 11.1%

d. 12.1%

Answer rating: 100% (QA)

The detailed answer for the above question is provided below RAROC stands for RiskAdjusted Return O... View the full answer