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    Economic Value Added (EVA)

    I apologize in advance if this is not the right post. A quick question about EVA (Economic Value Added). Study notes Crouhy, Page 17 - it is defined as : EVA (economic value added), or NIACC (net income after capital charge), is the after-tax adjusted net income less a capital charge equal to...
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    RAROC Hurdle rate

    I am watching your OpRisk Part B and the section on RAROC and adjusted RAROC. You say that in the first generation RAROC, you compute the RAROC and compare it to a "hurdle rate" and then if the RAROC os greater then you go ahead with some risky project. 1. What is "hurdle rate" and what is it...