Recovery rates refer to the percentage of individuals who regain their health or return to a normal state after experiencing an illness, injury, or other adverse event. This metric is often used in healthcare to assess the effectiveness of treatments and interventions. For example, in the context of COVID-19, recovery rates can help gauge how well patients respond to medical care. In finance, recovery rates indicate the amount of money that can be recovered from a defaulted loan or investment. This figure is crucial for lenders and investors to understand potential losses. For instance, in the case of a bankruptcy, the recovery rate helps determine how much creditors can expect to receive back from the failed entity.