CFA Practice Question

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CFA Practice Question

If you run linear regression on a set x-y data and obtain the results shown below then the percentage of variation in variable y due the variable x is ______.

A. -92%
B. 92%
C. 84.64%
Correct Answer: C

The percentage of variation in variable y due to variable x is r2. Now, r2 = (-.92)2 = 0.8464 = 84.64%.

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