Which of the following is part of the risk-adjusted return formula?

The risk-adjusted return formula is a key metric in finance that assesses the return on an investment by factoring in the associated risks. Among the listed options, interest revenue plays a crucial role in this formula.

Interest revenue represents the income generated from lending activities and is a primary component in calculating a lender's overall financial performance. It feeds directly into the gross return of a loan or investment. When calculating the risk-adjusted return, you start with total returns, which includes interest revenue, and then adjust for various risks to arrive at a more accurate measure of profitability per unit of risk taken.

The other options, while they may relate to the broader context of banking and finance, do not directly factor into the risk-adjusted return formula. Administrative fees pertain to operational costs, capital requirements relate to regulatory standards, and loan duration influences the risk profile but does not correlate directly with the return in the context of this specific formula.