R² Measures

question 76

Multiple Choice

R² measures

• A) the percentage of variability in the dependent variable, Y, explained by the model
• B) the unexplained variability
• C) the ratio of RSS/ESS
• D) the model sophistication

---

Definitions:

Risk-free Return

The theoretical return on an investment with no risk of financial loss, typically less than the return on riskier investments.

Defined Contribution Plan

A retirement plan where an employee, employer, or both make contributions on a regular basis, with future benefits fluctuating based on investment earnings.

Risk-free Return

The return on an investment with no risk of financial loss, typically associated with government bonds or other highly trustworthy securities.