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Explain What You Should Include in an Effective Recommendation Letter

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Explain what you should include in an effective recommendation letter.


Definitions:

Security Characteristic Line

A line used in finance to represent the linear relationship between the returns of a stock and the returns of the market.

Excess Return

Rate of return in excess of the risk-free rate.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its relative risk.

Regression Analysis

Regression analysis is a statistical method used for estimating the relationships among variables, often for the purpose of determining how one or more independent variables are related to a dependent variable.

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