Author

Nigel Lake

Title

Impact-Adjusted Return on Investment: A paradigm for decision-making in the 21st century.

Synopsis

Every business and every investor thinks about return on equity or return on capital or return on investment. As decision-making has become more sophisticated, these simple return measures have become more nuanced, leading to the creation of risk-adjusted return on capital and similar measures. Whilst all these have ugly acronyms (RAROC etc), they have had a big impact on improving the sophistication of financial decision-making.