If the Coefficient of Determination Between X and Y Is

question 10

Multiple Choice

If the coefficient of determination between X and Y is .72,approximately what percentage of the variance in Y can be explained by X?

• A)22%
• B)52%
• C)72%
• D)82%

---

Definitions:

Rate of Return

The positive or negative change in the worth of an investment, quantified over a predetermined period and depicted as a percentage of the initial investment cost.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Successive Years

Successive years that occur back-to-back without any breaks.

Compounded Quarterly

A method of calculating interest where it is added to the principal four times a year, after every three months, leading to faster growth of the investment.