Examlex
Which of the following is true?
Explanatory Power
The ability of a statistical model to account for a variation in a dependent variable through one or more independent variables.
Benchmark Error
A discrepancy between the performance of a benchmark index and the target performance of a fund or investment strategy it is supposed to represent.
Market Proxy
A representative asset or a portfolio that is considered to represent the characteristics of a particular market segment, often used in academic studies and financial analyses.
CAPM
The Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.
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