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Quantitative Methods
Quantitative Methods
Easy
An R² of 0.64 from a simple linear regression of stock returns on market returns indicates that:
A
64% of the variation in stock returns is explained by market returns
B
The correlation between stock and market returns is 0.64
C
The stock's beta is 0.64
D
64% of the time the model correctly predicts stock returns
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Tags
#r-squared
#coefficient-of-determination
#regression
#correlation
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