Why does System Properties display two different frequencies?

My System Properties window has the below text (also see screenshot). What does the "1.20 GHz " refer to?

Hewlett-Packard
HP Compaq dc7700p Convertible
Intel(R) Core(TM)2 Duo CPU
E4400 @ 2.00GHz
1.20 GHz 3.50 GB of RAM
Physical Address Extension

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Solution 1:

Most modern Intel CPUs have SpeedStep, which means that the CPU will reduce its speed by lowering the multiplier and lower its voltage to conserve power when it is idle. Your CPU is currently running at 1.2GHz, but has a maximum frequency of 2.0GHz when under load.