If the Coefficient of Determination Is 0

question 65

Multiple Choice

If the coefficient of determination is 0.9, the percentage of variation in the dependent variable explained by the variation in the independent variable

• A)is 0.90%
• B)is 90%.
• C)is 81%
• D)0.81%

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Definitions:

Liquidity Premium

The portion of a nominal interest rate or bond yield that represents compensation for lack of liquidity.

Inflation

An indicator of how quickly the overall price level for goods and services increases, leading to a decrease in buying power.

Inflation Premium

The additional yield that investors demand on securities to compensate for the loss of purchasing power due to inflation.

Nominal Interest Rate

The stated interest rate of a bond or loan, which does not account for inflation or the compounding of interest.