CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Given SSE = 12, SST = 120, n = 32, k = 5, compute adjusted R2.
A. 0.90
B. 0.88
C. 0.073
Explanation: R2 = 1 - SSE/SST = 0.9.
Adjusted R2 = 1 - [(32 - 1)/(32 - 5 - 1)] (1 - R2) = 0.88.

User Contributed Comments 4

User Comment
yly14 Can't memorize the formula, just looked for the number slightly lower than R2 of 0.9
chriswwu @yly14 - agree. I did the same.
sunday128 Good tip yly14
dariorf7 Is this answer correct? I get 0,78
1)
(1-R^2) = 0,19

2)
1 - [(n-1)/(n-k-1)] = 1 - [(32-1)/(32-5-1)] = 1 - (32/26)

3)
1 - [(32/26)x0,19] = 0,78

Someone please can explain?
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