In Simple Linear Regression, R² Is The​

question 86

Multiple Choice

In simple linear regression, r² is the​

• A) ​mean square error.
• B) ​correlation coefficient.
• C) squared residual.
• D) ​coefficient of determination.

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Definitions:

Market

A medium that allows buyers and sellers to exchange goods, services, or information.

Highly Competitive Market

A market structure characterized by a large number of sellers and buyers, leading to competitive pricing and minimal market power for individual firms.

Security Market Line

A representation in the capital asset pricing model (CAPM) that displays the relationship between the expected return of a security and its systemic risk.

Beta

A statistic that measures the volatility of a stock or portfolio compared to the market as a whole, used in the CAPM to calculate cost of equity.