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Today, psychosurgery is used only in severe cases of:
Risk Premium
The extra return expected by investors for taking on additional risk above the risk-free rate.
Cost of Capital
The minimum return needed for a capital investment project, like constructing a new manufacturing facility, to be considered viable.
Risky Projects
Investments or projects that carry a high level of uncertainty regarding their future returns.
Safe Projects
These are investment ventures with a low risk of failure or loss, often characterized by predictable revenue streams or market demands.
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