When discussing energy or power, it is important to understand the concept of fractional loss. This refers to the portion of energy or power that is lost during the process of smoothing or filtering. Put simply, it is the amount of energy that is unable to be utilized or converted into useful work. Without proper understanding of this concept, it can significantly impact financial decisions and outcomes. So, it is crucial to grasp the concept of fractional loss in order to make informed and effective financial decisions.