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

question 8

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.

Demonstrate knowledge of crowdsourcing and its application in company strategies.

Analyze online marketing frameworks considering context elements.

Understand the concept and importance of sustainable competitive advantage in long-term financial performance.

Recognize the importance of strategic planning and whether it is always sequential.

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Definitions:

Efficient Level

The point at which a system or operation is performing at its maximum potential without wasting resources.

Megawatts

A unit of power measurement equal to one million watts, commonly used to express the output of large power plants or the amount of electrical energy used by large entities.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Producer Surplus

The difference between what producers are willing and able to sell a product for and the actual price they receive, indicating the benefit to producers.