In Returns-Based Style Analysis a Coefficient of Determination of 95

question 41

Multiple Choice

In returns-based style analysis a coefficient of determination of 95% would suggest that

• A) The portfolio manager outperformed 95% of his peers.
• B) The portfolio manager was outperformed by 95% of his peers.
• C) 95% of the portfolio return variability could be attributed to portfolio style.
• D) 95% of the portfolio return variability could be attributed to stock selection skills.
• E) 5% of the portfolio return variability could be attributed to portfolio style.

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Definitions:

Cognitive Development

Refers to the progression and changes in cognitive abilities and processes that occur throughout a person's life, including thinking, problem-solving, and information processing.

Negative Physical Consequences

The detrimental effects on the physical body that result from certain behaviors, actions, or environmental factors.

Increased Risk

Refers to a higher likelihood of experiencing a negative event or condition compared to a baseline level.

Child Care

The supervision and care provided to children by individuals other than their primary caregivers, often encompassing educational and developmental activities.