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An Additional Expected Return to Compensate for the Possibility a Borrower

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An additional expected return to compensate for the possibility a borrower will fail to pay interest and/or principal when due maturity.


Definitions:

Slower Frequency

A rate of occurrence that is reduced or less frequent, typically used in the context of waveforms or signals.

Stage 1 Sleep

The initial phase of the sleep cycle, characterized by light sleep, where individuals can be easily awakened.

Theta Waves

Brainwave patterns associated with stages 1 and 2 of sleep, meditation, and some cognitive processes, typically in the 4-8 Hz frequency range.

EEG Brain-Wave

Refers to the electrical activity in the brain, as recorded by an electroencephalogram (EEG), showing patterns known as brain waves.

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