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The doctrine of specific nerve energies states that:
Required Rate
Required Rate refers to the minimum return investors expect to receive on an investment, which is influenced by the investment's risk profile and market conditions.
Credit Default Swap
A financial derivative that allows an investor to "swap" or offset their credit risk with that of another investor.
Recovery Ratio
A financial metric used to determine the amount of money recovered from an investment or project as compared to the amount invested or spent.
Notional Amount
The total principal or face value involved in a financial transaction, often used in derivatives trading.
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