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Darren owes Carl a past-due undisputed debt of $600. Darren sees Carl in a restaurant and pays him $500. Carl then says to Darren , "Forget about the other $100 you owe me. I'm glad to get the $500." Carl 's promise to discharge the remainder of the debt is binding.
Beta
A measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with investing in the stock.
Residual Standard Deviation
A statistical measure that quantifies the amount by which an investment's returns deviate from its expected benchmark performance.
Treynor Measure
A performance metric for determining how well an investment portfolio or fund has performed on a risk-adjusted basis, using beta as the risk measure.
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