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In pledging accounts receivable, the percentage advanced against the adjusted collateral is determined by the borrower based on its overall evaluation of the quality of the acceptable receivables and the expected cost of their liquidation.
Market Rate
The interest rate prevailing in the money market where instruments such as treasury bills and commercial paper are bought and sold.
Actual Return
The tangible profit or loss realized from an investment over a specific period of time.
Expected Return
The anticipated return on an investment, taking into account both the probability of gains and losses.
Unanticipated Information
Information that was not expected or predicted, often causing significant adjustments in financial markets or investment strategies.
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