Yes, ROCAR is "Return on Capital at Risk." I discussed the idea with a CPA one time. I described how AIM is rarely 100% at risk and asked if there was a way to compare AIM's performance on a risk adjusted basis.
It's actually return on average capital at risk over a selected period of time. For instance, if over a 5 year period one's portfolio averaged 75% invested (monthly basis) and 25% cash then one would use 0.75 as a divisor for the portfolio's gain over the period. If the gain had been 50%, then the ROCAR perceived gain would be 66.7%. This assumes zero gain for the cash and all the growth coming from the invested side. It's not something one can take to the Bank, but it does help to understand AIM's risk management method.
Best wishes,
OAG Tom
Buy from the Scared; Sell to the Greedy.....
