11-48 A major problem in estimating RAROC is the measurement of loan risk.

Name: 11-48 A major problem in estimating RAROC is the measurement of loan risk.
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RAROC (Risk-Adjusted Return on Capital) is a measure used in finance to determine the risk-adjusted financial performance of investments or businesses. Estimating RAROC requires measuring loan risk accurately, and it is a major problem because evaluating loan risk involves several factors such as creditworthiness, collateral, and market conditions.

11-48 a Major Problem in Estimating RAROC Is the Measurement