Damages That Are Agreed Upon at the Time the Contract

question 39

Multiple Choice

Damages that are agreed upon at the time the contract is entered into are called _____.

• A) compensatory damages
• B) consequential damages
• C) liquidated damages
• D) mitigated damages

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Definitions:

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.

Reward

Typically refers to the potential gains or returns derived from an investment or action, balanced against the risk involved.

Volatility

The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.

Portfolio Excess Return

The return on an investment portfolio that exceeds the return of a benchmark or risk-free asset.